All Articles Tagged - USDCAD

Week Ahead – BoC set to taper, ECB unlikely to rock euro

Posted on April 16, 2021 at 11:57 am GMT

It will be an exciting week for financial markets, with two major central bank meetings and a storm of economic data to keep traders busy. The Bank of Canada seems ready to scale down its gigantic QE program, though the European Central Bank is unlikely to disturb the waters. In the meantime, PMI business surveys from the major regions will give us a sense of how the recovery is progressing, and whether America continues to out-recover everyone else. EU vaccinations [..]

Daily Market Comment – Yields plunge, defy logic, after blowout data, but dollar steadies

Posted on April 16, 2021 at 9:06 am GMT

US economy firing on all cylinders as data keeps getting better But Treasury yields in surprise fall; dollar off lows as gold jumps to 7-week high Wall Street hits another record on upbeat earnings US recovery gathers steam but Treasuries in puzzling move The US economic outlook continued to brighten after retail sales surged almost 10% in March and jobless claims declined to a new post-pandemic low last week. The stellar data indicate America’s recovery is racing ahead of its [..]

Technical Analysis – USDCAD stuck in a bear trap; some bullish vibes are in the air

Posted on April 16, 2021 at 7:33 am GMT

USDCAD remained stuck below the long-term descending trendline and under the Ichimoku cloud for another week, but encouragingly, the 1.2515 support held firm on the downside, rejecting any close lower despite the fall to 1.2475 on Thursday. The latter strengthens the odds for an upside correction, with the Stochastics nicely backing this narrative too, as the indicator seems to have created a bullish double bottom around its 20 oversold mark. On the other hand, the RSI and the MACD keep hovering within [..]

US Open Note – US retail sales surprises but dollar remains firm

Posted on April 15, 2021 at 1:11 pm GMT

US retail sales’ number stronger than expected The spotlight of the day is the US retail sales of March, which surprisingly increased to 9.8% m/m, surpassing the predictions of 5.9%, versus a contraction of 3% in February. The retail sales control group advanced to 6.9% from -3.4% before. Initial jobless claims came out too – filings for unemployment benefits – declining to 576k in the week ending April 10 from 769k before, the lowest level since the start of the coronavirus crisis in March 2020. The greenback [..]

US Open Note – Stocks soar; dollar continues to slip as US yields fall

Posted on April 14, 2021 at 12:30 pm GMT

US dollar back to losses A downside move in the US dollar and the significant climb in US stock futures are the major themes of the day. The question is if this recovery is being driven by the fall in US yields after the milder-than-feared US CPI data. The US dollar index is approaching the 91.60 level, while dollar/yen is in the process of completing the third straight negative day around 109.00. Futures tracking the S&P 500, Nasdaq 100 and Dow Jones were pointing to a slight [..]

Technical Analysis – USDCAD surges above 1.2600 in a neutral phase

Posted on April 13, 2021 at 12:33 pm GMT

USDCAD is heading aggressively higher above the short- and long-term simple moving averages (SMAs), surpassing the 1.2600 handle, though the neutral bias is still in place. From the technical viewpoint, the RSI is confirming this bias as it is pointing upwards, approaching the 70 level, while the stochastic is travelling in the overbought territory. If the buying interest continues and the price jumps above the 1.2635-1.2645 significant resistance area, the 1.2700 psychological level could come next before flirting with the 1.2740 barrier, registered on March 5. Alternatively, [..]

US Open Note – Stocks consolidate at highs, gold adopts negative trajectory

Posted on April 13, 2021 at 12:25 pm GMT

Stocks composed and dollar strengthens heading for US inflation data Stocks are suspended around their highs as market jitters are apparent as we near the release of the upcoming US inflation figures. Treasury yields and inflation remain some of the key drivers for market sentiment and in diagnosing the recovery pace. Improving yields and their bolstering effect on the greenback could be enhanced should the US Consumer Price Index (CPI) for March – due to be released at 13:30 GMT [..]

US Open Note – Dollar lacks direction amid market calm; US stocks freeze

Posted on April 12, 2021 at 1:00 pm GMT

Dollar flattens in absence of data today; pound rises A calm day is on the table as dollar/yen is stable around 109.35 and the US dollar index is moving horizontally and marginally below the 200-day simple moving average (SMA) as the US data in the next days may drive the greenback even higher. The US Congress is starting to work on the infrastructure package with President Biden meeting centrist lawmakers from both parties. It is noteworthy that the US fiscal stimulus will be [..]

Daily Market Comment – Firm start for dollar after upbeat Powell; stocks cautious ahead of earnings

Posted on April 12, 2021 at 9:13 am GMT

Dollar edges up after uptick in US producer prices and a more positive Powell But yields ease slightly ahead of huge Treasury auctions Equities weighed by earnings caution and fears of China policy tightening Dollar tries to put bad week behind it It was a relatively calm start to the week in FX markets, but the momentum seems to be clearly behind the US dollar following a jump in US producer prices on Friday as well as Fed Chair Powell [..]

Technical Analysis – USDCAD’s positive impetus curbed by 50-day SMA and cloud

Posted on April 9, 2021 at 8:15 am GMT

USDCAD is struggling to tick higher after its recent positive propulsion off the 37½-month low of 1.2365. The descending simple moving averages (SMAs) are imposing the predominant bearish bias. Additionally, the fairly neutral demeanour of the Ichimoku lines is suggesting a phase where positive sentiment has become subdued, further tilting the scale in favour of the downside. Clearly positive momentum has significantly faded and this is being conveyed in the short-term oscillators as well. The MACD and the red trigger [..]

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