All Articles Tagged - USDCAD

US Open Note – Dollar continues march higher after the US retail sales release

Posted on November 16, 2021 at 2:04 pm GMT

US retail sales ticks up US retail sales are the highlight of today. The figure climbed by 1.7% m/m for October as compared to 0.8% in the previous month, driving the greenback higher. Despite supply issues and delivery delays, there is a strong belief that customers will begin their holiday shopping earlier this year. Vice President Biden has made his selection for the position of Chairman of the Federal Reserve. Powell is the most qualified candidate, even though Brainard has [..]

Canadian CPI may help loonie recover lost ground – Forex News Preview

Posted on November 16, 2021 at 10:35 am GMT

Canada will announce its inflation data for the month of October at 13:30 GMT on Wednesday. It is possible that the data will indicate that inflation has continued to accelerate, which would strengthen the case for an earlier rate hike and support the Canadian currency versus the greenback, helping it bounce back from the one-month low that was posted in the previous week. Annual CPI is forecast to tick higher The projection for the monthly CPI is for it to rise to 0.7% in October from 0.2% in the prior month. The annual inflation rate [..]

Technical Analysis – USDCAD ticks down as bullish tone fades

Posted on November 16, 2021 at 9:28 am GMT

USDCAD has been trending upwards since its medium-term downtrend reversed at the October low of 1.2287. However, in the last week, its progress has stalled as positive momentum evaporated and sellers took the upper hand again. Although the pair’s rebound is in question, the near-term neutral bias suggests that there is still hope for the bulls. The MACD histogram is below its red signal line but still in the positive area, while the RSI has flatlined at the 50-neutral mark. [..]

US Open Note – Greenback slips as Fed tapering starts

Posted on November 15, 2021 at 2:04 pm GMT

Fed tapering begins According to the FOMC meeting of November 2-3, tapering will begin this week as planned. The New York Fed announced its modified bond-purchase schedule last week, confirming that tapering will start this month. Until June, the Federal Reserve intends to keep reducing its purchases by $15 billion each month. There is a possibility of a change in tapering speed, but the Fed has indicated that it will only do so if it is necessary. Futures for the Fed Funds rate are still pricing in a Q2 liftoff of roughly two-thirds, while [..]

Daily Market Comment – Cautious tone ahead of risk events, dollar softer

Posted on November 15, 2021 at 10:03 am GMT

Stocks are mixed, dollar eases ahead of Biden-Xi meeting, US data, Fed speakers Modest lift from upbeat Chinese data as worries about property sector linger Yield differentials in driving seat in FX market, gold holds near highs Subdued start to week amid caution It was a relatively subdued start to the week across financial markets on Monday as stocks, bonds and the dollar were still reeling from last week’s US CPI shock. The panic and fallout from the jump in [..]

Week Ahead – More CPI data incoming; is the inflation storm about to get bigger?

Posted on November 12, 2021 at 12:58 pm GMT

As inflation in the United States hits a three-decade high, there could be further nasty surprises on the way as more countries publish their monthly CPI prints. The focus will also be on the economic recovery, as there is a host of other data coming up, including from the United Kingdom, Japan, China and Canada. Will global bonds join the selloff in US Treasuries if inflation surges elsewhere too, or will the dollar continue to ascend? US retail sales [..]

Weekly Comment – US retail sales in the spotlight

Posted on November 12, 2021 at 11:21 am GMT

The USD jumped as inflation continues to cast a shadow over the markets after the latest CPI report, fuelling bets that the Fed might accelerate its normalization plans. Talks around inflation are likely to dominate the headlines in the coming week as a raft of CPIs and retail sales data is on the way, while China reports its industrial production numbers. The highlights: Inflation will be a ‘hot’ topic in Canada, Japan, and the United Kingdom next week. Stronger-than-expected CPI [..]

Technical Analysis – USDCAD upsurge capped at 1.26 level

Posted on November 12, 2021 at 9:55 am GMT

USDCAD is exhibiting a more optimistic outlook, however; this is being tested by the 1.2600 handle, which has managed to curb additional gains from unfolding. Overall, the simple moving averages (SMAs) have converged and are relatively flat, suggesting the pair may adhere to a neutral trend. The Ichimoku lines are not demonstrating strong directional momentum even though the red Tenkan-sen line has overstepped the blue Kijun-sen line, while the short-term oscillators are leaning more to the upside. The MACD, which [..]

Daily Market Comment – Dollar rules the FX skies, equities undecided

Posted on November 12, 2021 at 9:43 am GMT

Dollar remains king as Fed shockwaves reverberate Stocks caught in limbo, oil prices wary of supply risks Second-tier data coming up today, but could be crucial Dollar reigns supreme The trading week is coming to a close with the dollar ruling the skies over the FX battleground, after a shocking acceleration in US inflation reignited expectations for faster Fed rate increases and served as jet fuel for the reserve currency. Markets are currently split on whether the FOMC will hike [..]

Technical Analysis – USDCAD visits fresh 1-month high above 1.2500

Posted on November 11, 2021 at 9:47 am GMT

USDCAD is creating an impressive upside rally after the bounce off the 1.2387 level and the lower band of the Ichimoku cloud, reaching a fresh one-month high around 1.2533 earlier today. The market has been developing in an ascending movement since October 21, holding well above the simple moving averages (SMAs). The RSI is flirting with the overbought region, while the stochastic is suggesting that the bullish movement may come to an end as it is turning slightly lower above [..]

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