All Articles Tagged - USDCAD

Technical Analysis – USDCAD bounces off 5-week low below 1.2400

Posted on April 27, 2021 at 6:42 am GMT

USDCAD held in losses on Monday, dropping to a five-week low of 1.2383 before turning higher around the 1.2400 handle. The RSI in the four-hour chart is missing direction in the bearish area, while the red Tenkan-sen keeps falling below the blue Kijun-sen line, increasing chances for a meaningful negative bias in the short-term trading. However, the stochastic oscillator posted a bullish crossover within the %K and %D lines in the oversold territory, suggesting an upside correction. Should the price close comfortably above the 1.2400 [..]

US Open Note – Dollar rebounds off new lows ahead of busy week

Posted on April 26, 2021 at 1:18 pm GMT

Dollar remains under pressure; big earnings are coming up The key event of the week is the FOMC meeting on Wednesday and a packed earnings schedule, starting with Tesla after the US market close. As US yields are still depressed, the US dollar index is drifting below the 91.00 crucial level, while dollar/yen is moving horizontally around the 108.00 round number after the pullback off the 13-month peak of 110.95. If there is a turnaround in US yields then there is an expectation of the dollar to regain some ground. US Durable [..]

Weekly Comment – Will the Fed bring the dollar back to life?

Posted on April 23, 2021 at 1:26 pm GMT

It was an eventful week in global markets. The Bank of Canada scaled back its asset purchase program, the euro capitalized on a rosier economic outlook thanks to faster vaccinations, and stocks retreated from record highs amid fears of higher capital gains taxes. The upcoming week seems even more electrifying. What to watch: · The Federal Reserve concludes its meeting on Wednesday. It will probably be a quiet one, but if investors sense that the Fed might follow in the [..]

Week Ahead – Fed to be a yawn but glowing US data could spoil the calm

Posted on April 23, 2021 at 12:46 pm GMT

Never have central bankers so seemingly sung from the same hymn sheet as Fed policymakers have in the past few weeks. Having successfully aligned market expectations, the Federal Reserve is almost certain to repeat the message that QE tapering is not on the near-term horizon when it meets next week. The Bank of Japan is also not expected to diverge from recent language when it announces its latest policy decision. Traders are therefore likely to turn their focus on the [..]

Daily Market Comment – Will the ECB disturb the waters?

Posted on April 22, 2021 at 8:41 am GMT

· ECB unlikely to rock euro – resilient economy vs higher yields · Loonie flies after BoC tapers QE program, signals earlier rate hikes · Wall Street bounces back, earnings season ramps up Lagarde’s tone to drive the euro The spotlight will fall on the European Central Bank meeting today. Not much has happened since the latest decision in March, but if anything, economic developments since then have been slightly encouraging. Economic data like the PMI surveys have been surprisingly [..]

Daily Market Comment – Can the Bank of Canada pull off a ‘cautious’ tapering?

Posted on April 21, 2021 at 8:54 am GMT

· Bank of Canada likely to scale down its vast QE program today · Dollar breathes sigh of relief, equities retreat as risk aversion returns · Crude oil hit by triple whammy, gold capitalizes on subdued yields BoC to take its foot off the QE gas The Bank of Canada will likely become the first major central bank to scale back its emergency stimulus programs today. The nation’s immunization program is firing on all cylinders and the economy has performed [..]

Technical Analysis – USDCAD retreats below 1.25; within descending channel

Posted on April 20, 2021 at 8:56 am GMT

USDCAD is decelerating within the descending channel, having retreated below the 1.2500 level and its short-term simple moving averages (SMAs) on the four-hour chart. The RSI is ticking lower in the negative region, while the stochastic is moving south towards the oversold zone. Immediate support could come from the latest low of 1.2472 before the focus turns to the 1.2363 barrier, taken from the troughs on March 18. On the flip side, an ascending move above the 20- and 40-period SMAs could face initial resistance around 1.2540. Slightly higher, the [..]

Bank of Canada policy meeting: A bond tapering story – Forex News Preview

Posted on April 19, 2021 at 4:02 pm GMT

The Bank of Canada (BoC) will set its policy on Wednesday at 14:00 GMT, two days after Trudeau’s government tables its first budget in two years. Given earlier warnings, the central bank is expected to stick to its plan and scale down its bond program, although the economy is reliving the worst days of the pandemic. With the decision having already largely priced in, the loonie may need an extra hawkish message to resume its rally. Bond tapering widely expected [..]

US Open Note – Euro capitalizes on battered dollar; Canada unveils new fiscal plan

Posted on April 19, 2021 at 12:56 pm GMT

Europe in green as dollar struggles The persisting weakness in US Treasury yields and some encouraging vaccine news in Europe left the dollar bruised on Monday. The vaccine success in the US and the optimistic outlook for the economy, although supportive to the greenback, have become old news for traders, while the stabilization in US Treasury yields suggests the Fed is likely becoming more successful in convincing markets that monetary policy will remain accommodative at current levels until substantial progress [..]

US Open Note – Dollar remains under pressure; euro hits wall at $1.20

Posted on April 16, 2021 at 12:49 pm GMT

Quieter end to the week; Morgan Stanley releases earnings A calmer session in the forex and stock markets is on the cards today. The US dollar index is struggling around the 91.60 level and the 50-day simple moving average (SMA), which is acting as a crucial level. Dollar/yen rebounded off the 40-day SMA and the 108.40 support, pointing marginally up today. The futures of the S&P 500, Nasdaq 100, and Dow Jones were pointing to a slightly positive open again after a new record high on Thursday. [..]

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