All Articles Tagged - USDCAD

Daily Market Comment – Markets steadier after NFP shock, but on alert for US CPI data

Posted on February 7, 2022 at 10:31 am GMT

Dollar’s NFP-led rebound eases but US inflation still to come ECB rate talk intensifies as euro eyes Lagarde testimony Stocks mixed as Amazon boost capped by soaring bond yields Dollar and yields settle down after NFP excitement Markets got off to a relatively calm start on Monday following a tumultuous end to last week on the back of the shockingly strong jobs report out of the United States. Nonfarm payrolls jumped by 467k in January, confounding both the most pessimistic [..]

Technical Analysis – USDCAD witnessed a minor retreat; bullish outlook maintained

Posted on February 7, 2022 at 8:18 am GMT

USDCAD has witnessed a minor retreat from its February high, after briefly surpassing its upper Bollinger Band. However, the pair is currently trading above its 50- and 200-period simple moving average (SMA), with the former crossing over the latter, reinforcing the case of a sustained bullish outlook. Short-term momentum indicators are reflecting a positive bias as the RSI is hovering above its 50 neutral mark. Moreover, the MACD is found above zero and its red signal line, which indicates that [..]

Weekly Comment – US inflation and GDP data from the UK in the spotlight

Posted on February 4, 2022 at 3:02 pm GMT

The European Central Bank made a hawkish shift after inflation in the monetary union surged to 5.1% in January. President Christine Lagarde refused to rule out interest rate hikes for 2022, bolstering the euro. In the upcoming week, US inflation and preliminary GDP data from the UK will take center stage, together with speeches from the governors of the BoE and BoC. Highlights: In America, inflation data for January will hit the markets on Thursday, with pricing pressures expected to [..]

US Open Note – Euro remains afloat above 1.14 after impressive NFP data; oil fires up

Posted on February 4, 2022 at 3:01 pm GMT

Euro survives NFP surprise The euro had been dancing to the ECB’s hawkish beats on Friday until the US nonfarm payroll report came to put the brakes on its dynamic rally, but the common currency managed to remain afloat. Following a bitter contraction in ADP private employment figures, analysts believed that their forecasts for a 150k growth were too optimistic for the month of January. Yet, the government’s first monthly comprehensive employment stats of 2022 revealed that the US economy is [..]

Technical Analysis – USDCAD ticks marginally up in short term

Posted on February 4, 2022 at 8:14 am GMT

USDCAD is rising somewhat in the short-term, hovering within the Ichimoku cloud and the 20- and 40-day simple moving average (SMAs). Regarding the technical indicators, the RSI indicator is pointing slightly upwards in the positive region, while the MACD is flattening around the zero level, suggesting the weak momentum on price. If the pair overcomes the 40-day SMA, the next stop could be at the 1.2800 psychological level before the rally finds strong resistance at the 14-month high of 1.2960. [..]

Canada reports jobs data, what’s the FX outlook? – Forex News Preview

Posted on February 3, 2022 at 3:04 pm GMT

The latest batch of Canadian employment data will hit the markets at 13:30 GMT Friday. It seems that the Omicron wave hit the labor market in January, with forecasts pointing to a loss in jobs. That said, this is probably a temporary setback. The loonie has been driven mostly by risk sentiment in stock markets lately, but over time, it could realign itself with Canada’s strong fundamentals and soaring oil prices. Solid economy The Bank of Canada hesitated to raise [..]

Technical Analysis – USDCAD marks yet more higher lows; bullish forces linger

Posted on February 1, 2022 at 3:14 pm GMT

USDCAD has marked yet more higher highs and higher lows since mid-January as bullish forces linger. Moreover, the 50-period simple moving average (SMA) is closing the gap with the 200-period SMA, and if the former manages to cross above the latter, it would reinforce the case of a sustained bullish outlook. Short-term momentum indicators are reflecting a mixed picture as the RSI is hovering slightly above its 50 neutral mark. However, the MACD is found below its red signal line [..]

Technical Analysis – USDCAD’s ascent intact despite dip below 200-MA

Posted on February 1, 2022 at 2:34 pm GMT

USDCAD has found some footing off the lower Bollinger band and within the support zone between the 1.2661 low and the 50-period simple moving average (SMA) at 1.2643. The longer-term SMAs are endorsing a neutral price phase, while the rising 50-period SMA is defending the latest uptrend, which began from a 10-week low of 1.2450. The short-term oscillators are conveying conflicting signals in directional impetus. The MACD, north of the zero line, is below its red trigger line hinting that [..]

US Open Note – Market in a volatile day; dollar surges to more than 1 ½ -year high

Posted on January 28, 2022 at 1:55 pm GMT

PCE price index ticks up; Rates in US rise December’s PCE data came into focus today from investors. The core PCE price index rose from 4.8% to 4.9% year-on-year. Currently, it is the highest since September 1983 and well above the Fed’s 2% goal rate. Personal income and spending also came in at 0.3% and -0.6% m/m respectively. Because of the widespread distribution of the omicron variety, retail sales and consumption decreased in December of last year. Rates in the United States are rising, [..]

Week Ahead – Three central banks meet ahead of US jobs report

Posted on January 28, 2022 at 12:47 pm GMT

A busy week lies ahead. The Bank of England is widely expected to raise rates, the European Central Bank is unlikely to signal anything new, but the Reserve Bank of Australia could try to dampen rate hike bets. Over in America, markets have almost fully priced in five Fed rate increases for this year, so the latest edition of nonfarm payrolls could determine whether the dollar still has some miles left in the tank. BoE set for action The Bank [..]

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