All Articles Tagged - USDCAD

Week Ahead – US inflation to fire up again, watch out Fed

Posted on December 3, 2021 at 1:22 pm GMT

Riskier assets have been under pressure ever since Omicron entered the equation, fearful that central banks cannot ride to the rescue this time because inflation is so hot already. This puts even more emphasis on the next edition of US inflation, which could accelerate towards 7% in yearly terms. The Bank of Canada and Reserve Bank of Australia will also hold policy meetings. Fed hits panic button The Fed chief dropped a bombshell on financial markets this week by signaling [..]

Technical Analysis – USDCAD eyes critical resistance border

Posted on December 3, 2021 at 8:54 am GMT

USDCAD is extending a one-and-a-half-month ascent above the Ichimoku cloud and towards the resistance ceiling of 1.2880-1.2955, which started to take shape around the later part of December 2020. The simple moving averages (SMAs) are currently not sponsoring a definitive trend in the pair. The climbing Ichimoku lines are indicating a predominant bullish drive, while the short-term oscillators are conveying an upside preference in the pair. The MACD, some distance above zero, is improving above its red trigger line, while [..]

US Open Note – Powell’s hawkish transition unable to boost the dollar

Posted on December 1, 2021 at 2:26 pm GMT

Powell signals faster tapering Global markets were struck by Fed Chair Jerome Powell’s hawkish tone during his testimony before the Senate Banking Committee on Tuesday. Powell stated that inflation could no longer be characterized as transitory, indicating that his central bank will consider speeding up its tapering process during the upcoming FOMC meeting in December. Terminating the Quantitative Easing programme faster than planned could be interpreted as an early rate hike signal since the Fed has made clear that it [..]

Technical Analysis – USDCAD still holds above short-term uptrend line

Posted on December 1, 2021 at 8:34 am GMT

USDCAD pivoted northwards following the rebound off 1.2727, with the price recouping the pullback that emerged earlier in the day. The positive slope in the RSI is endorsing the current bullish momentum in the price, though the stochastic oscillator has yet to show any improvement, extending its decline towards its 20 oversold level. Currently, the price is hovering between its 20- and 40-period SMAs and any advances higher could take the pair towards the two-month high of 1.2836. Beyond that, the 1.2847 resistance may immediately attract attention ahead of the 1.2895 barrier, registered on [..]

US Open Note – Dollar weakens as risk aversion grows

Posted on November 30, 2021 at 2:19 pm GMT

Fed Chair Powell to draw focus; Chicago PMI and consumer confidence eyed Market sentiment has weakened, and the greenback has taken a hit as concerns regarding the omicron variant have resurfaced. Disappointing comments from the CEO of Moderna on the efficacy of current vaccines along with concerns from the Fed Chair Powell seem to be the culprits. Federal Reserve Chair Powell mentioned that the omicron variant brings with it uncertainty around inflation and thus could upset growth prospects. The strain [..]

Loonie aims for data-driven recovery; Canadian jobs data eyed – Forex News Preview

Posted on November 30, 2021 at 11:22 am GMT

The Canadian dollar has been trading lower against the US dollar over the previous five weeks, but despite that, the forecast for the Canadian economy continues to be very positive. Traders will be waiting for the release of November’s employment report on Friday at 13:30 GMT to learn how strongly Canada’s economy continues to recover. Unemployment rate forecast to tick lower The Canadian unemployment rate fell to 6.7% in October from 6.9% in September, below market estimates of 6.8%, as employers across more provinces began requiring proof of [..]

US Open Note – Resilient dollar rebounds in calmer markets

Posted on November 29, 2021 at 2:51 pm GMT

Greenback shrugs off new virus scare, market sentiment bounces back The calmer markets today seem to have brushed off the shock linked to the new omicron variant that hit global equity markets on Friday. Despite markets rapidly regaining their composure, risk aversion may linger moving towards the end of the year, as not much has been proved about the new strain of the virus. That said, the World Health Organisation (WHO) aided markets by reiterating that the current symptoms connected [..]

US Open Note – Markets dive as new Covid variant identified

Posted on November 26, 2021 at 1:57 pm GMT

FX market is bleeding due to new variant; yen shines After the discovery of a new and possibly vaccine-resistant coronavirus variant in South Africa, Botswana, and Hong Kong, the FX market is posting strong losses and US stock futures are indicating a negative open. Flights from South Africa and other nearby countries have already been temporarily banned by Britain, which was followed by Israel and Singapore, and could lead to similar bans in other countries. The introduction of the new variant comes at a time when different European countries are coping [..]

Week Ahead – NFP report could keep the dollar rally going

Posted on November 26, 2021 at 11:23 am GMT

It will be hard for the US dollar to escape the spotlight in the coming week as the November jobs report will likely further fuel expectations of faster Fed tapering, extending the rally. The last month of the year is expected to get off to a busy start with a slew of data on the way. Aside from the US highlights, Canada will also be reporting jobs numbers in addition to its Q3 GDP print, Australia will publish growth figures [..]

Technical Analysis – USDCAD accelerates to fresh 3-month high

Posted on November 26, 2021 at 8:27 am GMT

USDCAD gained significant buying traction early on Friday – the largest daily increase since September –, with the price quickly recouping earlier losses to peak above Tuesday’s high of 1.2743. The positive slope in the RSI and the growing MACD are endorsing the current bullish momentum in the price, though with the former nearing its 70 overbought level and the key ascending line capping the market action, the bears could be around the corner. A decisive close above the ascending [..]

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