All Articles Tagged - USDCAD

Technical Analysis – USDCAD fades from 1½-year high back to neutral picture

Posted on May 23, 2022 at 3:26 pm GMT

USDCAD is resting on the blue Kijun-sen line at 1.2767 after its recent rally from 1.2457 ran out of steam somewhere around 1.3076. The simple moving averages (SMAs) continue promoting a neutral bearing following the pullback in the pair. The Ichimoku lines are indicating that positive forces have dwindled, while the short-term oscillators are signalling that negative momentum is growing. The falling MACD and RSI are hinting of further downward price action, while the stochastic oscillator has regained a negative [..]

US Open Note – Dollar loses ground after five weeks of gains

Posted on May 20, 2022 at 1:03 pm GMT

Dollar index ticks down as euro approaches $1.06 On Friday, the US dollar was on track to have its worst week against key rivals since the beginning of February. Global stocks have been falling this week as well due to risks to growth from aggressive monetary tightening – led by the Federal Reserve – and China’s strict lockdowns to quash an outbreak of Covid-19. The appeal of the dollar as a haven was eclipsed overnight by a decline in US yields as investors rushed for [..]

Technical Analysis – USDCAD shows negative pressures; indicators fall further

Posted on May 20, 2022 at 7:20 am GMT

USDCAD has come under renewed selling pressure, falling back below its 20-day simple moving average (SMA), but remaining slightly above the 1.2790 support level. Despite the latest pullback though, the pair has not posted a fresh lower low, which makes one hesitant to trust further declines for now. Looking at momentum oscillators on the daily chart though, they suggest further declines may be on the cards in the short-term. The RSI is moving towards its neutral 50 line, detecting negative [..]

US Open Note – Stocks pare gains; European currencies slip too after nice rally

Posted on May 18, 2022 at 1:40 pm GMT

Recession not fully priced in Who will pay the price? That’s the question that bothers investors nowadays as businesses feel more confident to transfer rising production costs to consumers and central banks constantly message markets that additional rate increases are the immediate solution for spiraling inflation. Further monetary tightening is largely anticipated in the UK as inflation clocked in at a new 40-year high of 9.0% y/y as expected in April, while the Fed chief stated yesterday that rates could [..]

Daily Market Comment – Wall Street rallies despite Powell’s inflation resolve

Posted on May 18, 2022 at 9:33 am GMT

Rebound in equities gathers steam even as Powell pledges to keep raising rates Jump in UK inflation fails to sustain pound’s bounce back as dollar strengthens But sentiment still overall fragile as China and inflation worries persist US data shores up stocks as Powell gets tough An upbeat set of economic pointers in the United States boosted sentiment on Wall Street on Tuesday, suggesting that financial conditions have yet to substantially tighten following the start of the Fed’s normalization process. [..]

Technical Analysis – USDCAD sellers yet to secure the upper hand, upside risks intact

Posted on May 16, 2022 at 2:13 pm GMT

USDCAD has managed to endure north of the 1.2900 handle despite the pullback from the pair’s recently recorded 17½-month high of 1.3076, which is just shy of the 1.3100 hurdle. Currently, the rising simple moving averages (SMAs) are defending the bullish picture in the pair. The short-term oscillators are signalling further selling in the pair. The falling MACD is implying that negative forces are growing, while the steadier RSI is demonstrating that a fresh push lower in the price could [..]

US Open Note – Dollar cools off, euro turns up and gold back to $1,800

Posted on May 16, 2022 at 12:53 pm GMT

Chinese data drives dollar higher In the wake of disappointing Chinese economic statistics, which sent the British pound and the Australian dollar down, the US dollar held onto its two-decade high earlier in the day. The surge in the dollar has been fuelled by China’s long-term economic lockdowns, which have contributed together with other uncertainties to an almost 10% rise in the dollar index since the beginning of 2022. In April, China’s retail and industrial activity declined substantially due to widespread Covid-19 lockdowns, which kept workers [..]

Week Ahead – Data avalanche to keep spotlight on rate hike expectations

Posted on May 13, 2022 at 1:32 pm GMT

It’s going to be a full-on week for economic indicators with a barrage of data due that should keep the guessing game going on how much central banks will tighten this year. Australia and the UK report jobs numbers, the latter will also release CPI readings along with Canada and Japan. Retail sales will be watched in the UK and US, as well as in China, while the Q1 GDP estimate will be important in Japan. China slowdown fears will [..]

US Open Note – Fed Chair Powell alleviates doom and gloom in stock futures

Posted on May 13, 2022 at 1:27 pm GMT

Dollar steady while Treasury yields rise, risk appetite cautiously improves The Chief of the Federal Reserve Jerome Powell has managed to calm market concerns around rate hikes, reiterating that the Fed is prepared to act accordingly, depending on whether the economy performs as expected. Nonetheless, the worrying rhetoric linked to tightening monetary policy in these times we live in, continues to fan the flames of negative sentiment. Treasury yields rose with the 10-year yielding 2.91%, the 5-year 2.86% and the [..]

Daily Market Comment – Panic eases, dollar cools, but sentiment remains fragile

Posted on May 13, 2022 at 9:34 am GMT

The week-long selloff gripping risky assets pauses, for now Yields also steady, dollar comes off highs after Powell provides some reassurances Cryptos bounce back as stablecoins reeling after crash A calmer end to a torrid week Markets were looking a lot steadier on Friday as the global rout in equities began to subside and demand for safe havens waned slightly. Stocks have been on the backfoot since the end of March. But the selloff accelerated last week after the Fed [..]

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