All Articles Tagged - USDCAD

US Open Note – Stocks stabilize and dollar strength lingers

Posted on June 22, 2021 at 1:41 pm GMT

Stocks level as yields support dollar; eyes on Fed Chair’s testimony US major indices are currently poised after yesterday’s rally that recaptured the ground lost after the Fed’s hawkish shift and indication that tapering is on the horizon, along with two interest rate hikes in 2023. Higher dot plot predictions alongside revised inflation and economic projections have slightly jolted markets. In general markets are reacting to employment and inflation more than other market drivers and risk appetite today appears subdued, [..]

Week Ahead – Fired up dollar looks to PCE inflation; flash PMIs and BoE eyed too

Posted on June 18, 2021 at 12:28 pm GMT

After the Fed’s abrupt but not totally unexpected hawkish turn, the supercharged US dollar will be hoping for another shot in the arm from next week’s PCE inflation data. Meanwhile, the flash PMI readings for June will be making the rounds in all the major markets. The forward-looking PMI surveys could further bolster tapering speculation – not just for the United States but elsewhere too – as economies around the world reopen with the help of ramped up vaccinations. In [..]

Technical Analysis – USDCAD marks best week for 2021; rally slows near familiar resistance

Posted on June 18, 2021 at 7:41 am GMT

USDCAD had its most constructive week since March 2020, rallying by 1.7% to a seven-week high of 1.2382. The bull run has snapped the one-month-old trading range and sent the price above its 20- and 50-day simple moving averages (SMAs), but a familiar heavy obstacle is currently threatening to put breaks on the rally. Particularly, the long-term resistance trendline and the surface of the Ichimoku cloud, which have been limiting upside movements over the past eight months, could captivate the pair below the 1.2400 level and within [..]

US Open Note – Markets asleep but ready to decode inflation and FOMC for clues

Posted on June 16, 2021 at 1:40 pm GMT

Stocks ease a bit from highs and dollar remains composed The US major indices are treading water beneath yesterday’s fresh highs, with the Dow Jones Industrial index still lagging behind. Risk appetite seems to be immune to echoes of tapering, and market sentiment remains steady ahead of the upcoming FOMC decision, while US 10-year yields (1.47%) have temporarily eased concerns around inflation pressures. The dollar index is static around the 90.50 mark with the euro ranging around $1.2120 and the [..]

US Open Note – Stocks keep modest advance, dollar mostly muted

Posted on June 15, 2021 at 2:23 pm GMT

Stocks tick up, Retail Sales and PPI data mixed US major indices are perky, with the S&P 500 index and the Nasdaq 100 tiptoeing to new highs and with the Dow Jones industrial index lagging slightly. Improved market mood and falling yields are not providing any assistance to the greenback. The US 10-year yield has pulled back to 1.44%. The dollar index is in the vicinity of its intra-day high of 90.60, and has recaptured minor strength across its forex [..]

Technical Analysis – USDCAD gains curbed by ceiling of trading range

Posted on June 15, 2021 at 7:47 am GMT

USDCAD is resting on the 200-period simple moving average (SMA) around 1.2125 following the deflection off the roof of a sideways market that has lasted for around a month. Nonetheless, the 50- and 100-period SMAs are gradually improving and should they cross above the 200-period SMA, this could be a positive sign for the pair. That said, the flattening blue Kijun-sen line is confirming the lack of force in the latest positive impetus, which resulted in the pair failing to [..]

Loonie needs some help to return to gains; Canada CPI on cards – Forex News Preview

Posted on June 14, 2021 at 12:50 pm GMT

Canada will announce its inflation data for the month of May at 12:30 GMT on Wednesday. Global economic activity is picking up as COVID-19 incidences decline in many nations and vaccine coverage rises. However, growth is still uneven across the country. Will the loonie move higher again after a couple of days of losses? Annual CPI is forecast to tick higher The projection for the monthly CPI is for it to fall to 0.4% in May from 0.5% in the prior month. The annual inflation rate is predicted to rise to 3.5% [..]

US Open Note – Stocks brush with highs, dollar flickers green and yields dip

Posted on June 11, 2021 at 1:51 pm GMT

Stocks and dollar climb a tad but market appetite appears muted Major US indices are holding near their highs with the S&P 500 index nudging up towards yesterday’s intra-day record high as the vibe in markets remains subdued, looking unresponsive to inflation and saturated talk around early tapering. Echoes from yesterday’s ECB meeting and the stronger US inflation results for May (Core CPI at 0.7% m/m and 3.8% y/y) seem to have fallen on deaf ears as a relatively [..]

Technical Analysis – USDCAD tiptoes above 1.20, but bearish picture endures

Posted on June 11, 2021 at 8:25 am GMT

USDCAD is consolidating around the level of 1.2060, which happens to be a key trough achieved in early September 2017, after its most recent deflection off the upper frontier of the descending channel. The bearish simple moving averages (SMAs) are still weighing on the pair that has ticked to 6-year lows of 1.2012 and 1.2006, near the 1.2000 barrier, where the price seems to have shaped a floor. Although the red Tenkan-sen line is reflecting a dry up in negative [..]

US Open Note – US CPI surprise driving dollar higher; Lagarde comments hurt euro

Posted on June 10, 2021 at 1:10 pm GMT

US CPI spike higher than expected Consumer prices in the United States were closely watched today for any clues about a tapering timeline. The headline CPI rose by 5% year-on-year for May, driving the dollar higher. This figure is the highest number since August 2008 amid low base effects from last year. The annual core CPI accelerated to 3.8% from 3.0% while the monthly rate ticked slightly down to 0.7% versus 0.9% previously. The Fed is anticipated to take baby steps towards slowing its bond purchases and the [..]

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