All Articles Tagged - USDCAD

Daily Market Comment – Wall Street snaps losing streak, but retail sales get the final say

Posted on May 14, 2021 at 8:29 am GMT

· Stocks bounce back as Fed calms tapering nerves, dollar retreats · US retail sales today could spark another round of volatility · Bank of Canada chief talks down loonie, FX market quiet overall Equity markets roar back The inflation scare on Wall Street turned out to be ‘transitory’ after all. The major stock market indices managed to claw back some of their losses for the week after some Fed officials dispelled the notion that this inflation episode is enough [..]

Technical Analysis – USDCAD rises after posting 6-year low

Posted on May 14, 2021 at 6:24 am GMT

USDCAD is gaining ground over the last couple of days, following the rebound off the six-year low of 1.2240. The price found an obstacle at the red Tenkan-sen line, which is acting as strong resistance. The MACD oscillator is trying to surpass above its trigger line in the negative area, while the RSI jumped above the oversold zone. The 20-day simple moving average (SMA) around the 1.2300 handle is the first hurdle to halt upside movements ahead of the 1.2365-1.2456 [..]

US Open Note – Dollar rally stalls despite strong jobless claims and PPI

Posted on May 13, 2021 at 1:10 pm GMT

Jobless claims fall again but dollar slips The producer price index and initial jobless claims out of the United States are in the spotlight today after last week’s disappointing jobs report and the surprise jump in inflation yesterday. US initial jobless claims declined to 473 thousand in the week ended May 7 versus 490K forecast after Wednesday’s inflation shock and the Federal Reserve was clear that the employment outlook will have to notably rise before there is a change in monetary policy. Annual inflation climbed to the [..]

Can US inflation and retail sales data rescue the dollar? – Forex News Preview

Posted on May 11, 2021 at 1:32 pm GMT

It’s a huge week for US economic data, with CPI inflation on Wednesday and retail sales on Friday. Following the shockingly disappointing jobs numbers lately, there’s less pressure on the Fed to scale back its QE program anytime soon, so the summer months could be difficult for the dollar. The US economy is still solid and the endgame is still a more hawkish Fed, but it will take longer to get there. Fed tapering delayed, not derailed The notion that [..]

Technical Analysis – USDCAD trades near 1.2100 and above 3½-year low

Posted on May 11, 2021 at 12:43 pm GMT

USDCAD is moving sideways in the 4-hour chart above the more-than-three-and-a-half-year low of 1.2078, testing the 1.2100 handle. In trend indicators, the short-and long-term simple moving averages (SMAs) are suggesting a continuation of the aggressive selling interest, as well as the Ichimoku cloud. The stochastic oscillator is creating a bearish crossover within its %K and %D lines, however, the RSI is looking oversold as it is turning up below the 30 level. If the bears continue to sell the pair, the [..]

US Open Note – Dollar steadies; pound skyrockets after elections

Posted on May 10, 2021 at 12:29 pm GMT

US steadier after slump from soft NFP report Today is a quiet day, with the US dollar moving slightly higher after the poor US jobs reports on Friday, which indicated that the Fed will have to keep accommodative policy for longer. The greenback is likely to remain soft until there is a notable turnaround in US yields. The US dollar index is hovering slightly above the 90.10 barrier, having on Friday created the sharpest decline in five months. Euro/dollar is looking neutral after it reached a new ten-week high of 1.2176 and gold is developing around three-month [..]

US Open Note – Dollar in tears after huge NFP miss; gold, euro soar

Posted on May 7, 2021 at 1:26 pm GMT

Nonfarm payrolls arrive significantly lower; Fed in focus The US jobs report was the highlight of the day, but the numbers did not come in as investors wished, with US nonfarm payrolls hugely missing the forecast of 978k to clock in at 266k and the unemployment rate disappointingly edging up to 6.1% versus 5.8% expected. March’s employment growth was also notably revised down, raising some doubts about how the hiring process is developing under the reopening phase and a booming [..]

Technical Analysis – USDCAD tests 2017 lows in oversold area; downtrend to hold

Posted on May 7, 2021 at 7:22 am GMT

USDCAD crashed below the 2018 trough of 1.2248 on Thursday, stretching its long-term downtrend towards the critical 1.2150 – 1.2060 zone, where the price bottomed back in 2017. A rebound, or at least a sideways trading, cannot be ruled out in the short term as the RSI is looking set to change course in the oversold area. On the other hand, the Stochastics, although below the 80 oversold mark, show no sign of strength, while the MACD continues to weaken in the [..]

US Open Note – Pound temporarily spikes on BoE policy announcement; dollar powerless

Posted on May 6, 2021 at 1:20 pm GMT

Eurozone retail sales accelerate, but caution still needed Developed markets are caught in the middle of the vaccination rollouts and monetary and fiscal stimulus the euphoria and the uncertainties surrounding the immune responses, virus variants, lockdown measures and a premature monetary tightening. In a nutshell, hopes currently are for consumers and businesses to benefit from the massive stimulus as the reopening phase wraps up in several key economies, and indeed the data seem to be reflecting this optimism, with eurozone retail sales for March [..]

Loonie may return to losses after April’s employment report – Forex News Preview

Posted on May 6, 2021 at 9:42 am GMT

The loonie has been enjoying a strong upside movement against the US dollar over the last month as investors are waiting for April’s employment report on Friday at 17:00 GMT. As the vaccine rollout continues, Ontario is planning to expand eligibility for coronavirus vaccines during May, with shipments increasing in the next weeks. Unemployment rate expected to tick higher In the previous release, the unemployment rate in Canada decreased for the second straight month to 7.5% in March, reaching the lowest level since February 2020. However, the consensus for April [..]

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