All Articles Tagged - USDCAD

Bank of Canada meeting: tapering and rate hike timeline on the agenda – Forex News Preview

Posted on October 25, 2021 at 7:12 am GMT

The Bank of Canada will announce its latest policy decision on Wednesday at 14:00 GMT and is widely expected to move a step closer towards winding down its pandemic-era stimulus. Having been the first major central bank to begin tapering earlier this year, the BoC has lost the race to be the first to hike rates. However, the rate hike timeline will likely be a key part of the discussion with policymakers potentially flagging an earlier rate increase than previously [..]

Global stocks advance; gold accelerates ahead of Powell’s speech – US Open Note

Posted on October 22, 2021 at 1:21 pm GMT

Evergrande’s default delayed While everyone was convinced that the endgame for Evergrande was a certainty, China’s indebted property giant made a last-minute $84mln interest payment overnight, avoiding an official default ahead of its 30-day deadline expiring this weekend. The news brought some risk-on back into play on Friday, propping stock markets and underpinning commodity-dependent currencies such as the aussie and the kiwi, though whether the company can only delay an imminent default remains to be seen. For the time being, [..]

Weekly comment – ECB and BoC to go their separate ways

Posted on October 22, 2021 at 1:19 pm GMT

Optimism returned to stock markets as a stellar earnings season calmed nerves, pushing investors away from the safety of the USD. The upcoming week is huge, with three central bank meetings, the tech titans reporting earnings, and a ton of crucial economic data to keep things exciting. The highlights: The ECB meets on Thursday and could push back against market pricing for a rate increase next year, since the European economy is still grappling with stagflation risks. That could inflict [..]

Technical Analysis – USDCAD retraces to 1.23 level before foothold takes shape

Posted on October 22, 2021 at 9:43 am GMT

USDCAD is consolidating across the 1.2300 handle after the price slipped back below the Ichimoku cloud and the simple moving averages (SMAs) over a period of one-month. The bullish bearing of the 50- and 100-day SMAs has softened, as has the negative tone of the 200-day SMA, overall signalling that the pair may adopt a more neutral form. The Ichimoku lines are indicating a pause in downward forces, while the short-term oscillators are conveying conflicting signals in directional momentum. The [..]

Daily Market Comment – Muted jubilation as Evergrande makes debt payment

Posted on October 22, 2021 at 9:14 am GMT

Relief as Evergrande averts default but China’s property woes not over Stocks mostly up but gains are modest as tech weighs Dollar hovers in recent range, eyes Powell speech for direction Commodity dollars bounce back, flash PMIs support euro and pound Evergrande interest payment calms nerves, slightly Embattled property giant, Evergrande, has reportedly paid its overdue interest on dollar-denominated bonds amounting to $83.5 million following weeks of speculation about its finances. Markets were taken by surprise from the news as [..]

US Open Note – Growth concerns bring risk-off into play; dollar’s slide halts

Posted on October 21, 2021 at 1:40 pm GMT

Stocks falter as risk-off returns Better-than-expected corporate earnings have been a boon to stock markets this month, with Southwest and American airlines flagging today that even the hardest-hit industries by the pandemic can still stand on their feet despite the energy crisis. Nevertheless, below the surface global economic warnings are still flashing red. The pandemic’s nasty supply shocks will probably keep fueling global inflation pressures for longer and businesses such as Unilever, will not hesitate to transfer costs onto consumers [..]

Daily Market Comment – Evergrande jitters return, yen climbs, dollar steady

Posted on October 21, 2021 at 9:10 am GMT

Evergrande shares plunge after sale of unit falls through, mood sours in equities Treasury yields ease back as Fed dampens early rate hike talk Yen bounces back, dollar edges up but commodity currencies take a tumble Stocks under pressure as Evergrande default risks grow Equity markets were feeling the strain of a fresh panic about China’s heavily indebted property sector after troubled real estate giant – Evergrande – told investors that the sale of its property services unit for $2.6 [..]

US Open Note – Stocks oscillate near record highs; commodity currencies hold firm

Posted on October 20, 2021 at 1:50 pm GMT

Stocks consolidate gains as earnings surprise Stock markets have been relatively flat marginally below their summer record highs during early US trading hours on Thursday, with the pan-European STOXX 600 consolidating last week’s impressive rebound and US stock indices switching between gains and losses. While investors were almost convinced that higher input costs, labor shortages and lack of raw materials would raise serious concerns among companies, the earnings season has surprisingly been a tailwind to equity markets so far, showing [..]

Technical Analysis – USDCAD hits 3-month low; remains bearish in medium term

Posted on October 19, 2021 at 9:30 am GMT

USDCAD is extending its losses and is currently trading below the falling trend line and the short-term simple moving averages (SMAs), completing a three-month low of 1.2319. The RSI turned lower after entering the negative territory below 50. At the moment, it continues to head lower in support of a bearish short-term picture. The bias in the very-short-term also looks bearish as indicated by the stochastics: the %K and %D lines are negatively aligned and are both moving further down. [..]

US Open Note – Inflation risks and the rate conundrum, dollar hangs in there

Posted on October 18, 2021 at 1:57 pm GMT

Risk evaporates but US Industrial production disappoints Market sentiment softened and the dollar remained subdued on the first trading day of week. Expectations that the Fed is preparing to taper is keeping the reserve currency afloat as well as pushing up the 10-year yield close to 1.62%. Inflation risks seem to be pushing central banks to take action, as markets are pricing in interest rate hikes in the later parts of 2022. US industrial production in September was much weaker, [..]

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