All Articles Tagged - USDCAD

The Canadian election and FX outcomes – Special Report

Posted on September 15, 2021 at 2:45 pm GMT

Canadians will go to the polls on Monday, September 20 to elect their new government. The outcome is too close to call, as the two main contenders are currently running neck-and-neck in opinion polls. The best scenario for the loonie is probably a comeback victory for Prime Minister Trudeau that enables powerful government spending as the Bank of Canada raises rates next year. Gambit When Prime Minister Trudeau called an early election in mid-August, he was looking to capitalize on [..]

Technical Analysis – USDCAD upside drive falters around 1.27 mark

Posted on September 15, 2021 at 2:34 pm GMT

USDCAD has retreated below the mid-Bollinger band at 1.2659 after a second attempt to fly above the 1.2700 barrier was once again halted within a week. The converging simple moving averages (SMAs) are not endorsing a definitive direction at this point in time. The short-term oscillators are somewhat skewed to the downside, reflecting the pickup in negative price action. The MACD, slightly in the positive region, is underneath its red trigger line, while the RSI has descended into bearish territory. [..]

US Open Note – Yen and oil surge as futures are steady

Posted on September 15, 2021 at 1:00 pm GMT

US inflation mildly affects dollar US inflation had a mild negative influence on the dollar, but yesterday’s fragile risk sentiment gave it a boost. This suggests that markets believe the Fed will delay tapering next week, which might lead to a range bound environment until the end of the week. In addition, China’s efforts to rein in private enterprises and the impact of the delta virus strain on economic development are among them. The US dollar index is heading south around the 50-day simple moving average (SMA), [..]

Daily Market Comment – Dollar unscathed by soft inflation, equities resume slide

Posted on September 15, 2021 at 8:45 am GMT

Dollar takes little damage despite signs US inflation has peaked Wall Street resumes selloff – all eyes on China contagion risks Canadian data coming up ahead of elections, gold wakes up Dollar defies gravity The US dollar has displayed an uncanny ability to absorb bad news without even a scratch lately, a power that was on full display yesterday after the latest US inflation stats disappointed. The annual core CPI rate fell by more than expected to reach 4%, adding [..]

US Open Note – Stocks push up and dollar index slips below 92.44

Posted on September 14, 2021 at 1:52 pm GMT

Markets and the greenback’s reaction connected to US CPI data Today’s pause on market volatility seems to have been hinged around market jitters prior to the release of the US CPI data, which is somewhat seen as the key that opens the taper door. The question is, has the rush to return to normality and subsequent supply bottlenecks been the main driver for inflation, suggesting it is temporary, or is there a deeper reason which the Fed is overlooking? These [..]

Canada’s inflation to approach 4%, reinforce BoC October taper – Forex News Preview

Posted on September 14, 2021 at 11:40 am GMT

The Canadian dollar is close to erasing its yearly gains even though the Bank of Canada is ahead of other central banks in terms of withdrawing pandemic-era stimulus. Expectations of tapering appear to have been fully priced in, so investors are seeking fresh incentives to turn bullish on the loonie again. Hotter-than-anticipated inflation might be one such incentive. The latest readings on the consumer price index (CPI) are out on Wednesday at 12:30 GMT. Some unforeseen headwinds Canada’s economy unexpectedly [..]

Week Ahead – US inflation takes center stage

Posted on September 10, 2021 at 11:29 am GMT

Without any central bank meetings on the agenda next week, the spotlight will fall on the latest edition of US inflation and retail sales. The chances of a Fed taper announcement this month have fallen dramatically after the disappointing jobs report, but this dataset could still be crucial for the normalization timeline and the dollar. There’s also a storm of economic releases from the UK, Canada, Australia, and China. Supply chain blues It looks like inflation won’t cool as quickly [..]

Technical Analysis – USDCAD loses steam above SMAs; sellers step up

Posted on September 10, 2021 at 9:05 am GMT

USDCAD, currently at the red Tenkan-sen line at 1.2624, is surrendering ground from the 1.2761 high after its recently made headways, resulting from a bounce off the 200-day simple moving average (SMA). The longer-term 100- and 200-day SMAs are validating a more neutral tone in the pair. That said, the bullish crossover of the 200-day SMA by the 50-day SMA has yet to confirm that sellers are now taking the lead. The somewhat static Ichimoku lines are indicating a pause [..]

Daily Market Comment – Euro steady ahead of ECB but stocks hit by market jitters

Posted on September 9, 2021 at 9:23 am GMT

Euro holds above $1.18 ahead of expected ‘tapering’ by ECB Fresh China crackdowns and fears of slowing growth dent sentiment Stocks slip, dollar rebound eases but yen edges up ECB to taper but call it something else The European Central Bank will probably join the taper bandwagon when it announces the outcome of its policy meeting later today. However, with some way still to go for the Eurozone recovery and a sizeable degree of uncertainty about the outlook, policymakers will [..]

Daily Market Comment – Dollar catches a bid; Johnson’s tax plan spooks pound

Posted on September 8, 2021 at 8:58 am GMT

Dollar stretches post-NFP rebound as yields creep up UK looks to tax hikes to cover Covid costs, pound slips to one-week low Loonie struggles ahead of Bank of Canada decision Dollar firms as November taper bets intensify The US dollar recouped more lost ground from the late August selloff as investors grew increasingly doubtful about whether Friday’s softer-than-expected jobs report would derail the Fed’s taper timeline. However, even though the Fed will likely still go ahead with tapering its monthly [..]

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