All Articles Tagged - USDCAD

Daily Market Comment – Equities under fire, dollar shines as yields soar

Posted on January 19, 2022 at 9:45 am GMT

Stocks remain under pressure as traders position for Fed hikes Dollar outperforms, yen benefits from risk aversion, euro hammered Oil prices keep going, Canadian inflation stats in the spotlight All about the Fed Bets that the Fed will take a sledgehammer to crush inflationary pressures continue to escalate. More than four rate increases are now priced in for this year, which means traders have started to entertain the idea of either a fifth increase or a ‘double’ hike of 50 [..]

Daily Market Comment – Stocks roll over, dollar steady, oil storms higher

Posted on January 18, 2022 at 9:49 am GMT

Markets fully price in four Fed rate hikes for this year, lifting yields Stocks under pressure, dollar recovers, gold surprisingly resilient Oil hits new highs, yen retreats after BoJ does nothing Fed worries hit stocks It has been a stormy couple of weeks for financial markets, with almost every asset class getting rocked by expectations that the Fed will need to normalize monetary policy more aggressively to cool inflation. The US labor market is so tight that wage growth has [..]

Technical Analysis – USDCAD marks yet more lower highs as bearish forces linger

Posted on January 18, 2022 at 9:31 am GMT

USDCAD has marked yet more lower highs and lower lows due to lingering negative forces. Moreover, the pair is also trading well below its 50- and 200-period simple moving average (SMA), and has recently completed a ‘death cross’ where the 50-period SMA has crossed below the 200-period SMA, increasing fears of a sustained bearish outlook. Short-term momentum indicators are supporting a mixed picture as the RSI is located below its 50 neutral mark. However, despite the MACD being below zero, [..]

Technical Analysis – USDCAD bearish bias active despite pause around 1.25

Posted on January 14, 2022 at 1:46 pm GMT

USDCAD is trying to recoup recently lost ground, after having impeded the sell-off that began around the 1.2700 handle, from stretching even lower. The pair is consolidating around the 1.2500 mark with buying forces starting to intensify but the bearish simple moving averages (SMAs) are suggesting that negative impetus has yet to be muted. Presently, the short-term oscillators are reflecting mixed signals in directional impetus. The MACD is improving in the bearish region above its red trigger line, indicating that [..]

Week Ahead – Bank of Japan meets, China releases GDP

Posted on January 14, 2022 at 12:52 pm GMT

The Bank of Japan will be in the spotlight next week. It will likely reaffirm that rates won’t rise for a long time, leaving the yen at the mercy of foreign central bank moves and risk appetite. The People’s Bank of China will also meet and could loosen policy to empower economic growth, although its actions are usually more important for stock markets rather than FX. BoJ – A hint of optimism The Japanese economy is turning a corner. A [..]

Daily Market Comment – Stocks falter again as hawkish Fed frightens markets, dollar rout deepens

Posted on January 14, 2022 at 10:42 am GMT

Wall Street headed for weekly losses as Fed and inflation worries weigh Fed officials set sights on March for liftoff, hawkish soundbites unnerve investors But dollar still sliding as terminal rate not seen going up much Fed rate hike talk takes toll on the markets Equity markets were back in the red on Friday after Wall Street’s rebound faltered on Thursday amid increasingly hawkish language from the Fed, a troubling inflation outlook and no let-up in the spread of Omicron. [..]

Technical Analysis – USDCAD stops near 200-SMA: temporary pause or bullish setup?

Posted on January 14, 2022 at 8:55 am GMT

USDCAD slumped towards the 200-day simple moving average (SMA) at 1.2495 after its bullish efforts to cross above the 50-day SMA and enter the 1.2700 territory collapsed, with the pair set to close 1.40% lower this week. Thursday’s session seems to have formed a bullish hammer candlestick in the chart, which foresees a reversal in price direction, though additional green candlesticks will be needed to confirm that. The Stochastics are also increasing the stakes for an upturn in the coming sessions as [..]

Daily Market Comment – Dollar skids despite US inflation jump, euro cracks above range

Posted on January 13, 2022 at 10:39 am GMT

US dollar is pummelled as strong CPI fails to galvanize the bulls More Fed officials flag March rate hike but yields go nowhere Wall Street extends rebound but earnings may hold the key to more gains US inflation hits 7%, markets take it in their stride It was another disconcerting inflation report out of the United States on Wednesday as headline CPI edged up to 7.0% in December – the highest since 1982. But the figure was in line with [..]

US Open Note – Inflation hits its fastest pace in four decades

Posted on January 12, 2022 at 2:16 pm GMT

Powell calms the markets Fears that the US economic expansion could be jeopardized by tighter monetary policy have been alleviated for now, as the Fed Chair Jerome Powell reassured investors that the central bank would bring down inflation without derailing the US economic recovery. Powell also avoided a comment on the timing of rate hikes and stressed that no decision has yet been made regarding the reduction of the Fed’s balance sheet. After his hearing, not much has changed regarding [..]

Daily Market Comment – Powell hawkish, but not hawkish enough to scare Wall Street

Posted on January 12, 2022 at 10:19 am GMT

Powell signals rate hikes and balance sheet runoff but yields hold steady Nasdaq extends recovery, global stocks also rally Dollar steadier after tumble as focus shifts to US CPI data Powell gets serious about taming inflation The Fed took another significant step towards policy normalization this week, as Jerome Powell repeated the message of his colleagues, flagging higher interest rates and a smaller balance sheet in his confirmation hearing on Capitol Hill for a second term as Fed Chair. With [..]

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