All Articles Tagged - USDCAD

Week Ahead – Could there be another NFP shock in store for the dollar?

Posted on May 28, 2021 at 12:44 pm GMT

As predictions about higher inflation turn out to be mostly correct, investors haven’t been doing such a good job in reading the health of the US labour market. The May nonfarm payrolls report will be an important test for the markets, although this time round, the risk might be skewed towards a positive shock. But a busy data schedule means traders will have more than the US jobs report to grapple with. Australian and Canadian GDP prints, Eurozone flash CPIs [..]

Daily Market Comment – Yields rise ahead of US inflation data; pound jumps on rate hike hint

Posted on May 28, 2021 at 9:13 am GMT

Treasury yields advance on Biden’s $6 trillion budget plan; PCE inflation eyed next But modest gains for dollar as pound spikes after BoE’s Vlieghe hints at 2022 rate hike Stocks head for weekly gains, buoyed by US data and budget proposal, but tech lags Bond yields perk up as big spending back in focus US and global yields look set to end the week on a much firmer note than they started as the prospect of a massive federal budget [..]

Technical Analysis – USDCAD lengthy consolidation points to bullish breakout

Posted on May 28, 2021 at 7:34 am GMT

USDCAD extended its consolidation phase around the crucial 2017 low of 1.2060 for the third consecutive week, increasing speculation that the bears are losing the fight and the bulls could soon take charge. Indeed, the positive slope in the RSI and the Stochastics, which are sailing away from oversold waters, and the upside reversal in the MACD suggest that downside risks are fading. Still, the 20-day simple moving average (SMA) appeared quite restrictive over the past two days and unless it gives [..]

US Open Note – Stocks largely silent, dollar stumbles and yields provide no support

Posted on May 27, 2021 at 1:45 pm GMT

Stocks hint risk absence, dollar loses confidence, GDP and jobless claims draw focus The mood in markets seems to be subdued with major US indices remaining largely unchanged after today’s US GDP and weekly unemployment claims. The dollar seems to be playing defence as the 10-year yield dips to 1.53%. The dollar index is consolidating around the 90.00 mark. The pound has performed well, pivoting around $1.4100 and building strong traction on the dollar’s slight setback. The euro recouped earlier [..]

US Open Note – Kiwi shines after RBNZ’s hawkish stance; Dollar remains below 109 yen

Posted on May 26, 2021 at 1:00 pm GMT

RBNZ less dovish message drives kiwi up Kiwi is the best performing currency today versus the US dollar, surpassing the 0.7300 handle and recording a fresh three-month high. The Reserve Bank of New Zealand (RBNZ) projected a rate hike by September 2022, taking the economy closer to an exit from the pandemic situation. The bank signalled a less dovish message in May, while leaving monetary policy steady, as it revised up its forecasts for inflation higher but lowered them for unemployment. In other commodity [..]

US Open Note – Stocks improve, dollar on back foot as yields dip again

Posted on May 25, 2021 at 1:49 pm GMT

Stocks creep up as dollar heads toward 5-month lows; Fed echoes no alarm Markets seem to be emanating a slight improvement in risk sentiment as major US indices are extending yesterday’s rally at a somewhat slower pace. The fresh dip in the US 10-year yield, currently at 1.58%, is not providing any assistance for the dollar to regain some of its market dominance. As rates are not going anywhere soon as the inflation narrative continues to be downplayed, the dollar [..]

Technical Analysis – USDCAD eyeballs recently reached 6-year bottom

Posted on May 25, 2021 at 9:32 am GMT

USDCAD is consolidating between its freshly found footing at 1.2012, a multi-year bottom, and the high of 1.2144. Nonetheless, USDCAD remains predominantly bearish, with the falling simple moving averages (SMAs) weighing on price improvements. The Ichimoku lines are reflecting the pause in the pair’s decent from the 1.2653 high but are signalling that the price trajectory remains heavily tilted to the downside. Furthermore, the short-term oscillators are reflecting price’s negative preference despite marginal upticks in positive momentum. The MACD, in [..]

US Open Note – Dollar mixed in the absence of data

Posted on May 24, 2021 at 12:47 pm GMT

Dollar waits for PCE inflation; euro jumps above $1.22 This week is a quiet period in terms of data as the US core PCE on Friday will be in the spotlight. The US dollar posted some marginal gains in the beginning of this session, but lost steam after finding strong resistance near the 109.00 round number versus the Japanese yen. The lack of major releases is not helping the greenback to turn up until there are more strong US data and Treasury yields stop their decline. The US [..]

Daily Market Comment – Inflation uncertainty makes for cautious start to week

Posted on May 24, 2021 at 9:28 am GMT

Dollar and stocks firmer, look to Fed speakers and data for momentum, inflation clues Euro softer after Lagarde comments, pound slips too Metal prices fall again after China warning, aussie struggles Inflation vs recovery theme Lingering fears of an upsurge in inflation weighed on sentiment at the start of this week’s trading amid a somewhat quieter day with several European markets closed for a public holiday. The clashing themes of the growing inflation threat and the strengthening global recovery have [..]

US Open Note – Stocks, currencies in quiet trading as taper concerns take the back seat for now

Posted on May 21, 2021 at 1:09 pm GMT

European stocks could gather interest What is striking about economic data is that the stronger they become around multi-year highs, the smaller the need for stimulus, and consequently investors are less encouraged to drive stocks higher. But this narrative likely fits the US landscape better, where stock indices are more skewed towards expensive tech and other growth companies. In Europe, stocks continue to trade in a discount relative to their US counterparts, with the STOXX 600 index trading 16.7x forward earnings versus 21x for the S&P 500 according to Refinitiv estimates – despite the gap narrowing a [..]

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