All Articles Tagged - USDCAD

Technical Analysis – USDCAD flirts with 200-day SMA, below 1.2600

Posted on July 16, 2021 at 7:17 am GMT

USDCAD has found strong resistance at the 200-day simple moving average (SMA) and is reversing slightly to the downside today. The RSI is confirming the recent negative move as it is pointing south in the positive territory; however, the MACD is stretching its bullish momentum above its trigger and zero lines. In the case that the 200-day SMA acts as a significant turning point, it could send the price lower again towards the 1.2420 support, which coincides with the 20-day [..]

Daily Market Comment – Powell calms inflation nerves; dollar and yields dip but stocks unfazed

Posted on July 15, 2021 at 9:13 am GMT

Fed chief Powell plays down inflation spike, says tapering is “a ways off” Dollar and yields head back down before virus fears re-emerge, yen climbs Equities only modestly boosted as growth concerns weigh after China GDP miss Powell soothes nerves but hints at U-turn Fed Chair Jerome Powell sought to allay growing worries that the bout of higher inflation is here to stay and that stimulus would have to be dialled back soon when testifying before lawmakers on Wednesday. While [..]

US Open Note – Stocks dip from record highs and dollar soars after CPI beat

Posted on July 13, 2021 at 1:50 pm GMT

Markets digest key US inflation data Market composure and the subdued volatility in the forex arena quickly faded as today’s US CPI data beat expectations. US major indices dived from their tops as much stronger inflation figures jolted markets, causing jitters in the currency markets as well, shaping into dollar-driven volatility throughout the forex arena. It will be interesting to see the rhetoric in Fed Chairman Jerome Powell’s testimony in the coming days relating to the recovery, price pressures and [..]

Bank of Canada to taper again as loonie succumbs to Delta concerns – Forex News Preview

Posted on July 13, 2021 at 11:59 am GMT

The Bank of Canada will announce its latest monetary policy decision on Wednesday at 14:00 GMT, which will be followed by a press conference by Governor Tiff Macklem at 15:00 GMT. With Canada’s economic recovery from the pandemic ticking along nicely, the BoC looks set to further scale back its bond purchases. However, looking at the Canadian dollar’s recent performance, it’s hard to tell that the BoC is the first major central bank to begin the tapering process. As worries [..]

US Open Note – Dollar soars ahead of busy week; commodities ease

Posted on July 12, 2021 at 12:35 pm GMT

Dollar’s strong move drives euro lower Ahead of a busy week, the dollar is moving higher against a basket of currencies. Dollar/yen is holding above the 110.00 handle, developing within the short-term simple moving averages (SMAs), while US futures are mixed before the market opens. Euro/dollar is slipping below the 1.1850 level as ECB President Lagarde warned investors to expect new monetary stimulus guidelines in the next ten days and hinted that more measures to help the euro-area economy may [..]

Daily Market Comment – Risk appetite runs into trouble again as virus cases trend higher

Posted on July 12, 2021 at 9:24 am GMT

Worries that Delta variant is fuelling a new global surge in infections sap sentiment Dollar halts decline, edges up, while stocks back under pressure Bonds to stay in focus as Treasury auctions, CB meetings, Powell testimony coming up Subdued start to week as virus woes return Risk assets were struggling on Monday as signs that virus infections have started to creep higher globally put a dent in the improvement in sentiment that took hold from the middle of last week. [..]

US Open Note – Markets cool down after a messy week despite China’s RRR cut

Posted on July 9, 2021 at 1:26 pm GMT

Stocks get on their feet ahead of earnings Markets took a breather at the end of a turbulent week, which suddenly derailed hopes of a swift economic recovery and promoted self-realization that the vaccination program alone may not be enough to re-establish the pre-Covid normality. The pan-European STOXX 600 is currently up by around 1.0%, having recouped a large share of yesterday’s losses, with consumer cyclicals, basic materials, and real estate enjoying the biggest gains. The index, however, is still [..]

Weekly Comment – Bond rally eases ahead of trio of central bank meetings

Posted on July 9, 2021 at 1:11 pm GMT

If the saying that the bond market is always right is to be believed, traders are having a major rethink about the narrative that major economies will recover quickly from the pandemic, allowing central banks to unwind some of the stimulus. While there doesn’t seem to be a clear explanation as to what caused bond yields to crash this week, there may be more volatility in the coming days as the RBNZ, Bank of Canada and Bank of Japan set [..]

Week Ahead – RBNZ and BoC to stay on taper path but Delta strain may cause angst for BoJ

Posted on July 9, 2021 at 10:53 am GMT

It will be a busy week as the Bank of Canada, Bank of Japan and the Reserve Bank of New Zealand all meet, while inflation will take centre stage on the data front. With increasing concerns that the new Delta Covid variant could scupper reopening plans around the world, Japanese policymakers are the most likely to strike a more cautious tone, but the BoC and RBNZ will probably maintain their optimism for now. After the Federal Reserve signalled that a [..]

Technical Analysis – USDCAD fortifies short-term bullish structure

Posted on July 9, 2021 at 8:05 am GMT

USDCAD charted a new higher high at 1.2589 on Thursday, signaling that the trendline cracked in June could be something more than temporary. The bullish cross between the 20- and 50-day simple moving averages (SMAs) is endorsing the above narrative but technically, a sustainable move above the previous high of 1.2652 is needed to invalidate the long-term downtrend and hence bring new buyers into the market. The 200-day SMA and the 23.6% Fibonacci retracement of the March 2020 – May 2021 [..]

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