All Articles Tagged - USDCAD

Daily Market Comment – Volatile trading continues as Fed meets, Ukraine tensions boil

Posted on January 25, 2022 at 10:24 am GMT

Wall Street bounces back but futures, Asia sink again; mood brighter in Europe Dollar and yen hold firm as Fed angst and geopolitical risks keep havens in demand Earnings and US consumer confidence gauge may test investor nerves More rocky rides for stocks Shares on Wall Street staged a dramatic rebound on Monday, recovering from heavy losses that briefly took the S&P 500 into correction territory. The benchmark index was down by about 4% at one point before a last-minute [..]

Weekly Comment – FOMC and BoC interest rate decision in the spotlight

Posted on January 21, 2022 at 1:57 pm GMT

Stocks continued their selloff as demand for tech and high-growth companies has declined on the back of rising Treasury yields and geopolitical tensions in Eastern Europe. In the upcoming week, interest rate decisions from America and Canada will take center stage, together with updates on global economic activity from American, European, British and Japanese purchasing managers indices. Highlights: In America, the Fed will conclude its first FOMC meeting for the year on Wednesday, with Fed Chair Powell anticipated to set [..]

US Open Note – Stocks extend declines, dollar maintains resilience

Posted on January 21, 2022 at 1:19 pm GMT

Market sentiment deteriorates as yields remain elevated Wall Street’s correction continues to develop lower, with the tech-heavy Nasdaq 100 affected more, falling 4.6% yesterday. Despite this week’s disappointing US jobless claims, which rose 286k versus an expected 220k, potentially due to surging cases of Omicron, and the correction in the US equities – in an environment of elevated yields – the market story is likely to remain the same with the Fed moving forward with removing accommodation and delivering expected [..]

Week Ahead – Fed, BoC to sing from same hawkish hymn sheet; data flurry on the way

Posted on January 21, 2022 at 12:49 pm GMT

A jam-packed week for central banks and economic releases is coming up as the inflation story continues to grip the markets. With the price data pointing up and bond yields fired up, investors are expecting nothing but hawkish talk from the Federal Reserve and the Bank of Canada. The latter could even go one step further and put words into action. In Europe, though, all eyes will be on the flash PMI readings where Omicron likely weighed on economic activity [..]

Daily Market Comment – Yen shines as stock market selloff deepens

Posted on January 21, 2022 at 9:59 am GMT

US stocks erase early gains to close negative, falling yields don’t help Yen advances as risk aversion intensifies, oil succumbs to gloomy mood Dollar choppy, Netflix disappoints, US-Russia meeting in focus Selling snowballs The stock market just can’t shake off the blues. Wall Street took another sharp hit yesterday as investors continued to unload riskier assets and rotate into safe havens to insulate their portfolios from any further downside. All this mayhem started with worries around the Fed raising interest [..]

Technical Analysis – USDCAD finds significant support at 200-day SMA for further declines

Posted on January 21, 2022 at 8:04 am GMT

USDCAD has found strong support at the 200-day simple moving average (SMAs) over the last few sessions, remaining above the 1.2500 psychological number. The RSI indicator is also appearing weak in the negative region, while the stochastic oscillator is heading up after the bullish crossover within the %K and %D lines in the oversold zone. In case the pair changes its very short-term neutral direction to the upside, the bulls will probably challenge the 1.2600 round number, taken from the inside swing [..]

US Open Note – Market sentiment freezes, dollar largely unchanged

Posted on January 20, 2022 at 2:33 pm GMT

Markets digest US jobless claims and Philly manufacturing The US stock futures correction deepened as risk sentiment has remained negative, while the 10-year yield at 1.88% seems to be keeping the dollar buoyant. It appears the hawkish tone from the Fed has saturated markets and they have become less sensitive lately. The US economy is nearing full employment and today’s rise in jobless claims has managed to only nudge the dollar index slightly lower, stabilizing around the 95.40 level. The [..]

Inflation is driving up rate hike bets globally, so why does the dollar remain king? – Special Report

Posted on January 20, 2022 at 10:50 am GMT

It is now universally accepted that the pandemic-induced surge in inflation is no longer looking very transitory and central banks around the world are starting to hit the panic button. The US Federal Reserve is not only talking about rate hikes but wants to begin quantitative tightening soon. The Bank of England and Reserve Bank of New Zealand have already lifted rates at least once. Even the ultra-dovish European Central Bank is keeping its options open in terms of possibly [..]

Technical Analysis – USDCAD flirts with flat 200-day SMA and 1.2500

Posted on January 19, 2022 at 2:03 pm GMT

USDCAD is posting significant losses today, as it is diving beneath the flat 200-day simple moving average (SMA) and the 1.2500 psychological number. The RSI indicator is also turning lower in the negative territory, while the stochastic oscillator is ready for a bearish cross within the %K and %D lines above the 20 level. More decreases could find support at the 1.2390 barrier ahead of the latest low of 1.2285. The 1.2200 psychological number may halt the bearish moves ahead [..]

US Open Note – Stocks fail to recover, dollar remains resilient

Posted on January 19, 2022 at 1:24 pm GMT

Elevated yields favour dollar, Canadian inflation in spotlight The primary market focus remains centred around the Fed and how it will tackle inflation, with market participants juggling the premise of how many rate hikes will unfold this year. Expectations almost ‘guarantee’ three hikes but the dollar’s recent gains have been fuelled by rising Treasury yields, which have supported the dollar index around the 95.60 mark. US stock futures are somewhat finding their feet after the correction, while the 10-year Treasury [..]

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