All Articles Tagged - USDCAD

Technical Analysis – USDCAD’s bounce looks frail as bearish bias overpowers

Posted on March 19, 2021 at 9:55 am GMT

USDCAD’s recent positive impetus off a multi-year low has been muted by the Ichimoku lines, while the capping 50-day simple moving average (SMA) and the lingering Ichimoku cloud overhead have once again guided the pair downwards. The Ichimoku lines are promoting negative momentum, while all SMAs are reinforcing the bearish structure. Positive sentiment seems to remain subdued, something also being reflected in the short-term oscillators. The MACD, although flattening, is south of the zero threshold and remains below its red [..]

US Open Note – US futures slip, dollar edges up and pound eases after BoE decision

Posted on March 18, 2021 at 1:32 pm GMT

Dollar points up again; Pound eases after BoE decision Thursday brought some mild risk-on trading back on the surface after the release of the Bank of England (BoE) decision, which comes hot on the heels of the Fed’s dovish statement yesterday. The US dollar moved broadly higher as the euro/dollar fell to around 1.1925, below the 200-day SMA, while cable is declining slightly after the dovish Bank of England (BoE) decision to hold interest rates at a record low of 0.1%. Policymakers mentioned that UK GDP is anticipated recover during 2021 to achieve reach pre-coronavirus levels, [..]

Technical Analysis – USDCAD steps up but bearish pressures overpower

Posted on March 17, 2021 at 4:22 pm GMT

USDCAD’s recent improvements over the red Tenkan-sen line have yet to dent the broader bearish bias. The simple moving averages (SMAs) are endorsing the commanding downwards tone and the recent bearish crossover of the 100-period SMA by the 50-period one could reinforce this outlook. The Ichimoku lines are reflecting negative sentiment, despite the marginal easing in the red Tenkan-sen’s downward slope and the recent pickup in buying interest. However, the short-term oscillators are indicating the recent upturn in the price [..]

US Open Note – Stocks soften, dollar flashes green, FOMC draws focus

Posted on March 17, 2021 at 2:04 pm GMT

FOMC jitters, dollar steps up, CAD inflation There seems to be a calm before the storm in markets today, with momentum somewhat having dried up in a climate of economic optimism. The FOMC nerves seem to have benched market players, despite expectations for the Fed to stick to its current course of action, now that accelerated jabs are reaching peoples arms and stimulus relief and government spending will soon start to show face in the economy. The main narrative seems [..]

Daily Market Comment – Bonds and dollar steady, stocks mixed ahead of Fed

Posted on March 17, 2021 at 9:42 am GMT

Fed decision awaited as 10-year Treasury yields hold above 1.60% Dollar flat, Wall Street futures slip as investors brace for Fed inaction EU’s vaccine shambles continue, euro battles to defend $1.19 level More jawboning expected as Fed to stay course Markets were in a calm mood on Wednesday, though sentiment erred on the side of caution as uncertainty around the FOMC decision kept investors on edge. The Federal Reserve is highly anticipated to hold rates and its stimulus programmes unchanged [..]

US Open Note – Dollar freezes in calm day; Vaccine rollout gets delayed

Posted on March 16, 2021 at 1:59 pm GMT

Dollar holds firm; S&P 500 flies to record high The market today is calm as investors are all waiting on the Fed tomorrow to commit to any firm moves. The FOMC is starting a two-day meeting that will end tomorrow and no change in policy is predicted, but the forward guidance for interest rates and asset purchases will be crucial. Stock futures are almost flat today and the bond market is virtually unchanged, so this looks like a market waiting for guidance from the Fed. European stocks/equities/markets are [..]

Daily Market Comment – Dollar recovers, stocks stand their ground despite rising yields

Posted on March 15, 2021 at 9:48 am GMT

Dollar gets its mojo back as US yields march higher, loonie climbs too US stock markets close at record highs, resilient to rising yields Quiet start to a busy week, featuring Fed, BoE, and BoJ meetings Can’t hold stock markets down The narrative that rising bond yields are toxic for stocks came under heavy fire lately. American stock markets hit new record heights last week even as longer-dated Treasury yields moved to new cycle highs, demonstrating that a higher cost [..]

Week Ahead – Will Fed & Co follow in ECB’s footsteps and signal QE shift?

Posted on March 12, 2021 at 1:56 pm GMT

The Federal Reserve will be meeting for the first time since yields exploded higher and the Biden stimulus bill became law. The Bank of England and Bank of Japan will announce their decisions too. Will the Fed and other central banks take their cues from the European Central Bank and respond to the bond market selloff by stepping up their purchases? The debate about whether higher yields warrant fresh policy action will likely dominate the market conversation, especially as there’s [..]

Daily Market Comment – Wall Street hits new records but euphoria fades as yields rise

Posted on March 12, 2021 at 9:42 am GMT

Threat of rising yields keeps animal spirits in check, revives dollar ECB promises to speed-up QE, but euro/dollar driven by other factors Yen suffers as rate differentials widen, Canadian jobs data coming up Stocks hit new records but cool down as yields climb The battle between growing economic optimism and concerns of monetary policy normalization continues to rage in financial markets. Investors are warming up to stocks amid hopes that all the federal spending will lead to an unprecedented boom [..]

Technical Analysis – USDCAD rebounds above 3-year low but outlook is still negative

Posted on March 12, 2021 at 7:10 am GMT

USDCAD is heading marginally north after the slip to the 1.2525 support level, however, the pullback off the descending trend line in the previous sessions signals a strong negative momentum in the broader outlook. From the technical view, the MACD oscillator is suggesting a flattening movement as it stands slightly below its zero and trigger lines, however, the RSI is pointing up in the negative territory. The Ichimoku lines are showing a neutral-to-bearish bias in the short-term. Further losses could [..]

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