All Articles Tagged - USDCAD

Daily Market Comment – Dollar licks wounds after rollercoaster week, tech stocks rebound

Posted on May 21, 2021 at 9:30 am GMT

Dollar skids towards 3-month lows as inflation and taper fears ease further Wall Street halts losing streak as lower yields lift tech stocks Commodities extend losses but gold holds near highs amid rotation out of crypto Dollar bruised by Fed taper false alarm Inflation and taper jitters subsided further on Friday following the mid-week scare when the Fed minutes revealed some worries about persisting high inflation and eagerness among some participants to begin the taper debate. However, markets have concluded [..]

Technical Analysis – USDCAD touches 6-year low but bearish bias retains command

Posted on May 21, 2021 at 9:11 am GMT

USDCAD is tiptoeing across the 1.2060 support barrier, related to the critical trough from back in September 2017, after the latest downfall ticked to a 6-year low of 1.2012. The sliding bearish simple moving averages (SMAs) are defending the negative structure, while the Ichimoku cloud continues to overshadow hopes of improvements in the pair. The current snapshot of the flattening Ichimoku lines is implying that negative momentum is taking a breather. This is also being expressed in the short-term technical [..]

US Open Note – Dollar flatlines after FOMC meeting minutes; equities mixed

Posted on May 20, 2021 at 1:16 pm GMT

Markets in no man’s land after FOMC meeting minutes Markets seem to be in no man’s land today. On the one hand, the reopening phase in developed countries and accommodative fiscal and monetary policies point to a bright future for the global economy. On the other hand, the patience among central banks against rising fears of above-target inflation threatens a delayed response and a bumpy economic recovery. Surprisingly, the FOMC minutes from April’s meeting attempted to shed some light on [..]

US Open Note – Stocks in the red as inflation debate continues; dollar recoups some ground

Posted on May 19, 2021 at 1:19 pm GMT

Fed meeting minutes eyed as inflation jitters resurface Inflation jitters and the latest infection pickups in Asia offset growth optimism in markets on Wednesday and revived fears that the Fed could start its tapering process and subsequently raise interest rates sooner than expected although the central bank has talked down the case several times, arguing that any spike in inflation will be temporary. Perhaps the Fed may once again put its assurances into words when it releases its minutes from [..]

Daily Market Comment – Inflation fears creep in again ahead of Fed minutes

Posted on May 19, 2021 at 9:12 am GMT

Inflation worries spark US tech selloff, prompting caution ahead of Fed minutes US futures slip further but dollar slide eases on slight risk averse mood Loonie pulls back from highs on lower oil prices, eyes CPI data Inflation concerns won’t go away Market jitters about higher inflation resurfaced late on Tuesday, weighing on equities, as investors reassessed the outlook for earnings growth against a backdrop of higher costs and supply constraints. Big tech stocks with sky-high valuations were the biggest [..]

US Open Note – Stocks pick up, dollar hurt and gold retains bullish tone

Posted on May 18, 2021 at 1:15 pm GMT

Stocks recoup yesterday’s lost ground as dollar loses dominance US major indices are largely holding around yesterday’s highs after having reclaimed surrendered ground, emanating a slight pickup in risk appetite. That said the damage in the greenback is being felt across the board. The dollar index plunged below the 90.0 mark and has managed to stabilize around 89.70. The Fed’s dovish stance seems to be weighing on the greenback and sentiment appears to be subdued. Steady yields are not discouraging [..]

Technical Analysis – USDCAD needs strong boost to avoid 6-year low again

Posted on May 18, 2021 at 1:06 pm GMT

USDCAD is ticking up marginally after it reached a more-than-six-year low at 1.2012. The technical indicators are suggesting an upside recovery after the strong selling interest. The RSI is pointing north following the rebound off the 30 level, while the stochastic posted a bullish crossover in the oversold territory. Immediate resistance could come from the 1.2045 barrier before jumping towards the 20- and 40-period simple moving averages (SMAs) at 1.2105, which stands near the lower surface of the Ichimoku cloud. Even higher, the 23.6% Fibonacci [..]

Daily Market Comment – Stocks bounce back as optimism returns, dollar sags

Posted on May 18, 2021 at 9:13 am GMT

Stocks bounce back as recovery hopes supersede virus and inflation jitters Dollar slumps on easing Fed taper worries but inflation bets lift gold Euro and pound surge as Europe reopens, loonie hits highest in 6 years Markets buoyed as optimism takes over Fears about rising virus cases in Asia receded on Tuesday as signs that infections in India are on the decline and as more European nations slowly lift their restrictions boosted hopes that the global recovery remains on track. [..]

Weekly Comment – More pain for USD or will the Fed let something slip?

Posted on May 14, 2021 at 1:34 pm GMT

After some wild gyrations, nothing much has changed for USD as investors are in the dark as ever on when the Fed will dial back its QE programme. The only thing that has become more certain is that it’s less likely to be in the summer. As markets are bombarded with conflicting data, the volatility can only get worse. But a quieter week ahead might provide some respite. What to watch: The focus will remain very much on the Fed [..]

US Open Note – US retail sales disappoint with minor impact on greenback

Posted on May 14, 2021 at 12:57 pm GMT

US retail sales dive below expectations The highlight of the day is the US retail sales, which were flat month-on-month in April, worse than the 1% increase that was expected versus an upwardly revised 10.7% surge in March. The US dollar index is retreating for the second consecutive day with weak momentum and unable to surpass the 91.00 mark. Dollar/yen is trading soft but above the 109.00 psychological level. The dollar could gain on a rise in US yields, while the slow recovery in the employment market may turn consumption [..]

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