All Articles Tagged - USDCAD

As central banks push back on rate hike bets, can they be trusted? – Special Report

Posted on November 10, 2021 at 3:40 pm GMT

The world’s biggest central banks have been on the offensive lately, arguing that markets have become overly aggressive with their pricing of rate hikes. Policymakers have been taken aback not only by the scale of the price shocks induced by the global shutdowns but also by how widespread and persistent the supply constraints have become. Subsequently, inflation expectations have risen to multi-year highs, with bond markets being the first to respond to the changing inflation landscape. But who is right? [..]

US Open Note – Risk off mood ahead of key US data, dollar ticks higher with yields

Posted on November 10, 2021 at 2:08 pm GMT

US Inflation report and unemployment claims mixed Investors are digesting today’s US CPI data and unemployment claims, which came out at 13:30 GMT. The figures could force the Fed to consider delivering tighter monetary policy measures, especially as inflation came in stronger. Supply shortages continue to linger and are feeding price pressures, while the rising US two-year yield is aiding the greenback. The dollar index has steered above the 94.00 mark, while the euro has dipped to $1.1535, and the [..]

Technical Analysis – USDCAD advances ease as 200-MA approaches

Posted on November 9, 2021 at 3:05 pm GMT

USDCAD’s positive powers seem to be slowly dwindling ahead of the falling 200-period simple moving average (SMA) currently at 1.2478. The pair appears to be adopting a more horizontal trajectory between the converging SMAs. The flattening Ichimoku lines are indicating that directional forces have softened, while the short-term oscillators are conveying mixed messages in directional momentum, suggesting the pair may continue to consolidate for a while. The MACD, in the bullish region, is gliding beneath its red trigger line, while [..]

US Open Note – Dollar still holds in negative territory after US PPI

Posted on November 9, 2021 at 2:16 pm GMT

Calm day with US core PPI Across the board, this week’s data has been strong but not so important. The market has instead been focused on central banks, with both the US Federal Reserve and the Bank of England meeting last week. The FOMC voted to taper immediately in November, with a $15bn reduction per month in purchases, which implies asset purchases would end completely by June 2022. Markets are continuing to price in a Fed lift-off that occurs sooner than the Fed desires. Even though many Federal [..]

US Open Note – Dollar eases at the beginning of the week

Posted on November 8, 2021 at 2:01 pm GMT

FX arena remains calm As the new week gets underway, the outlook for the dollar is slightly negative. Having initially climbed on Friday, the dollar index later declined from the 94.62 high and has since remained negative. The euro, which has remained heavy following last week’s unsuccessful drop below the $1.1525 level, is still moving near $1.1570 with weak momentum. On Friday, the pound challenged the support near $1.3410, where it was unable to break through. A clean break below would set up a test of the December 2020 low of $1.3135, which would be a significant step forward. [..]

US Open Note – Nonfarm payrolls don’t impress dollar; Canadian jobs data mixed

Posted on November 5, 2021 at 2:41 pm GMT

Central banks keep faith in transitory inflation Central banks showed sympathy to people’s fears of high inflation the past two weeks but clearly rejected the strong rate hike pricing in markets for the next year, clarifying that they will remain faithful to their initial assessment of temporary inflation, and hence, keep borrowing costs steady, even if the transitory phase lasts a bit longer. Investors did not completely digest the recent dovish talk on interest rates and perhaps higher rates will [..]

Daily Market Comment – BoE sinks pound, roils bond markets; All eyes now on NFP

Posted on November 5, 2021 at 9:57 am GMT

BoE shocks markets by not raising rates as expected, pound crashes below $1.35 Bond yields slump globally as central banks push back on investors’ rate hike pricings Dollar stands tall, Wall Street at a record ahead of October payrolls report BoE: the unreliable boyfriend strikes again The messaging was clear, or so everyone thought. Repeated signalling by Bank of England Governor Andrew Bailey that the Bank will need to act to keep a lid on surging inflation had led markets [..]

Technical Analysis – USDCAD aims for more progress near 200-SMA

Posted on November 5, 2021 at 8:48 am GMT

USDCAD has been rising on the support of the red Tenkan-sen line this week, reaching the limits of the 200-day simple moving average (SMA) and the 50% Fibonacci of the 1.2006 – 1.2947 upleg at 1.2477. The compression in Bollinger bands foreshadows a significant change in volatility ahead, with the momentum indicators signaling that the breakout could be on the upside. The RSI has crawled above its 50 neutral mark, the MACD is recovering above its red signal line, and [..]

Daily Market Comment – Dollar holds firm but yields slip ahead of Fed decision

Posted on November 3, 2021 at 10:14 am GMT

Bond yields pressured amid risk of Fed following RBA in pushing back on early rate hike Softer start for stocks after Wall Street notches up another record close Aussie and kiwi recoup losses but pound mired in BoE uncertainty Oil skids on inventories build-up, mounting pressure on OPEC Bond markets choppy as Fed awaited for liftoff clues Markets are gearing for the Fed’s long-anticipated taper announcement on Wednesday when the world’s most important central bank will formally call time on [..]

Loonie may have more room to rise after employment data – Forex News Preview

Posted on November 2, 2021 at 1:31 pm GMT

The Canadian dollar traded lower against the US dollar on Tuesday as traders expect the release of the October employment report on Friday at 12:30 GMT. As a result of the hawkish surprise at the latest Bank of Canada (BoC) meeting, the loonie’s gains have been minimal, as a decline in oil prices has offset the boost from the hawkish BoC. In the preceding month, Canada’s unemployment rate declined for the fourth month in a row to 6.9%, which was the lowest rate since the beginning of the coronavirus pandemic, as some provinces [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

USDCAD

XM Live Chat