All Articles Tagged - USDCAD

Technical Analysis – USDCAD in a bearish mode ahead of NFP

Posted on June 3, 2022 at 7:18 am GMT

USDCAD lost the battle with the 200-day simple moving average (SMA) on Thursday and tumbled to a three-week low of 1.2556 after two days of waiting to cross above the line and the 1.2655 resistance. The price is currently trading near a familiar constraining zone, which has been frequently limiting upside and downside moves around 1.2565 for more than a year now. Questions, however, are rising about whether it will successfully stage a meaningful rebound at this point as technical signals keep [..]

US Open Note – Dollar continues the sell-off after ADP and ahead of NFP; oil erases losses

Posted on June 2, 2022 at 12:43 pm GMT

ADP dissapoints; NFP comes out tomorrow After the disappointing release of the ADP report which announced 128K workers versus 300K that was expected, the dollar is still trading lower. After two days in a row of gains, the dollar index retraced to a low of 102.12. As dollar/yen traded over 130 for the first time since the middle of May, the trend of the yen weakening has re-established itself. Sterling is holding above $1.25, within the short-term moving averages. Yesterday, Bullard stated that the path that the Fed [..]

Daily Market Comment – Dollar recovers, OPEC fires warning shot at oil prices

Posted on June 1, 2022 at 9:05 am GMT

Euro/dollar remains hostage to US yields and stock markets OPEC clips the wings of oil prices, gold loses some altitude too Bank of Canada decision and US data in the spotlight today One big trade Global markets have turned into one giant trade in recent months. Almost every asset class is driven by the same two elements – the intensity of inflationary forces and the threat of recession. The bond market has been at the epicenter of this shift, with [..]

BoC policy meeting: Stick to the guidance for now – Forex News Preview

Posted on May 31, 2022 at 4:34 pm GMT

The Bank of Canada will probably stick to the script on Wednesday at 14:00 GMT, announcing another jumbo rate hike to rein in inflation. The Canadian dollar, however, may not respond aggressively as investors have factored in the rate announcement, while they also expect additional increases during the next months. That said, any warnings about the drawbacks the rate hike cycle may cause, especially on the housing market, could still generate some volatility. Another sharp rate increase expected The Bank [..]

US Open Note – Sentiment wanes as recession jitters grow

Posted on May 31, 2022 at 2:27 pm GMT

Dollar and oil regain buoyancy as yields recover This week is due to deliver important data regarding the economic outlook in the United States, which may prove to have more significance, as these align with a time of growing worries for a recession in the US. Consumption and employment in the US are robust, but markets are looking to the ISM Manufacturing PMI and the May payrolls report to further bolster sentiment. US treasury yields are heading higher again as [..]

Technical Analysis – USDCAD bearish, tracing the lower Bollinger band

Posted on May 30, 2022 at 3:41 pm GMT

USDCAD is following the lower Bollinger band and is testing the 1.2646 inside swing lows from the latter half of April. The 100-period simple moving average (SMA) is starting to roll over, while the sliding 50-period SMA is looking set to complete a bearish crossover of the 200-period SMA too. Both are signalling that negative momentum in the pair is intensifying. The short-term oscillators are skewed to the downside, reflecting little to no waning in negative impetus, conveying the message [..]

Week Ahead – Nonfarm payrolls on tap, has the dollar topped?

Posted on May 27, 2022 at 11:09 am GMT

The latest US employment report will be in the spotlight next week for any signs that recession worries have started to impact hiring. The dollar has lost some of its power lately and this dataset could determine whether we are in the early stages of a trend reversal. Inflation numbers from Europe will be another crucial variable for that equation. Elsewhere, the Bank of Canada is set to raise interest rates. Hiring freeze The risk of recession is front and [..]

Technical Analysis – USDCAD trickles toward SMAs as sellers retake control

Posted on May 27, 2022 at 9:34 am GMT

USDCAD is extending its retreat from the recorded 17½-month high of 1.3076, heading lower towards the converged simple moving averages (SMAs), which are not now endorsing any sturdy price trend. The pair has retracted within the region of a trading range that had lingered for a period of nearly ten months. The short-term oscillators are reflecting the increase in negative momentum. The MACD, in the positive area, has distanced itself below its red trigger and is approaching the zero mark, [..]

US Open Note – Market sentiment dulls with growth worries

Posted on May 24, 2022 at 2:02 pm GMT

US yields ebb and heavy dollar follows A risk-off tone has gripped markets as rekindled growth concerns are being highlighted due to China supply constraints from lockdowns, the domino effects from the Russian invasion on Ukraine and pressures on central banks who are expected to do more to bring inflation lower without pushing their economies into recession. The already aggressive Federal Reserve is finding its job to curb inflation more challenging as the degree or constant pace of tightening is [..]

Daily Market Comment – Stocks slip, dollar mixed as mood sours again

Posted on May 24, 2022 at 8:05 am GMT

China stimulus fails to lift markets, yen edges up, dollar mixed US stock futures reverse lower after Snap issues profit warning Euro and pound await flash May PMIs Growth jitters strike again Renewed concerns about the weakening growth prospects of the major economies weighed on sentiment on Tuesday, bolstering safe-haven currencies such as the US dollar, Japanese yen and Swiss franc. Markets have been caught between a rock and a hard place since Russia’s invasion of Ukraine as central banks [..]

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