All Articles Tagged - USDCAD

Canadian employment data may drive loonie higher – Forex News Preview

Posted on March 11, 2021 at 12:47 pm GMT

The Canadian dollar is gaining some ground against the US dollar with weak momentum as investors are waiting for February’s employment report on Friday at 13:30 GMT. It’s noteworthy that the currency is moving slightly up despite policymakers indicating at Wednesday’s monetary policy meeting that the labor market is a long way from recovery, with employment still well below pre-coronavirus levels. A reduction in unemployment is forecasted In the previous release, the unemployment rate in Canada increased to 9.4% in January, the highest since August. The consensus for February is for the unemployment rate is to [..]

US Open Note – Markets in peace after US CPI figures meet forecasts; Treasury bond auctions in focus

Posted on March 10, 2021 at 2:11 pm GMT

German DAX 30 hits fresh record high The European session was mostly quiet, with the pan STOXX 600 claiming a small measure of gains as bond yields in the region continued to sideline below this week’s highs along with US Treasury yields. Yet, despite the softer positive tone, the German DAX 30 index managed to pin a new record high slightly above the 14,500 mark on the back of healthcare and real estate shares, which soared by 2.19% and 1.20% [..]

Daily Market Comment – Receding yields drive markets into euphoria, BoC meets

Posted on March 10, 2021 at 9:24 am GMT

Bond yields cool down, setting off massive rebound in tech stocks Dollar retreats a touch ahead of US inflation data and key bond auction Bank of Canada meets as well – dovish signals could bruise the loonie Everyone is trading bonds these days Global markets continue to be driven almost entirely by moves in bond yields. The week started with Wall Street panicking about rising yields, but the hysteria soon faded and euphoria made a stunning comeback yesterday as yields [..]

Technical Analysis – USDCAD violates Ichimoku cloud’s floor as gains remain curbed by 200-MA

Posted on March 9, 2021 at 11:33 am GMT

USDCAD is currently piercing the Ichimoku cloud’s lower surface, while the pair remains confined within a consolidation pattern between 1.2574 and 1.2746. The simple moving averages (SMAs) are reflecting the undecided course in the pair with a bullish crossover of the 100-period SMA around 1.2638, by the 50-period one, while the 200-period SMA is capping improvements in the price. The directionless Ichimoku lines have yet to signal a strong clear direction, while the short-term oscillators are currently backing the latest [..]

Bank of Canada to stand pat, keep one eye on the loonie as recovery gathers steam – Forex News Preview

Posted on March 8, 2021 at 3:59 pm GMT

The Bank of Canada meets this week to set policy and will announce its decision on Wednesday at 15:00 GMT. No change is expected in either interest rates or the pace of asset purchases. But following the better-than-anticipated GDP performance in the fourth quarter, a booming housing market, soaring oil prices and renewed efforts to accelerate Canada’s vaccine rollout, speculation is growing about how soon policymakers will signal a tapering of their quantitative easing (QE) programme. In the meantime, the [..]

Week Ahead – Will ECB make a stand against rising yields?

Posted on March 5, 2021 at 12:52 pm GMT

With bond markets going berserk lately, investors will turn to the European Central Bank meeting on Thursday. Some senior policymakers have been vocal about ‘fighting’ this rise in yields, but immediate action seems unlikely. Meanwhile, the Bank of Canada will have to play down a solid economy when it meets on Wednesday. In the US, inflation data could be crucial for the Fed narrative, though all eyes will be on Capitol Hill, where Biden’s relief package is about to pass. [..]

Technical Analysis – USDCAD trapped in a bear market; trendline resistance in focus

Posted on March 5, 2021 at 8:35 am GMT

USDCAD attempted to quickly recover from a three-year low of 1.2467 as it did back in 2016, but the tough ascending trendline and the bottom of the Ichimoku cloud put the brakes on bullish forces, leaving the pair on the sidelines this week. The RSI and the MACD keep the odds for a meaningful rally muted as the former has been struggling to sustain strength above its 50 neutral mark, while the latter could not climb into the positive territory [..]

Daily Market Comment – Yields creep up ahead of Powell; stocks slip, dollar firms

Posted on March 4, 2021 at 9:35 am GMT

Fragile risk sentiment as yields rise again, sending shares on Wall Street skidding Powell speech in focus as bond volatility sparks speculation of ‘Operation Twist’ Commodity currencies fend off stronger dollar but euro and pound struggle Rising yields causing headache for the Fed The rout in bond markets is far from over as the selloff that had subsided somewhat earlier in the week accelerated again on Wednesday, pushing global yields higher. The US 10-year yield came within a whisker of [..]

US Open Note – Dollar’s fight back continues as bond market remains in focus

Posted on March 2, 2021 at 2:14 pm GMT

Wall Street could start the day in red; bond market in focus The futures tracking the S&P 500 and Nasdaq 100 are signaling a negative open today after their biggest advance in almost nine months, as investors cautiously monitored the bond market and progress on the next round of fiscal stimulus. Wall Street surged on Monday as bond markets calmed, while developments on Covid-19 vaccines and fiscal stimulus bolstered expectations of a swift economic recovery. The dollar gained on the back of the reflation trade. Dollar/yen [..]

Technical Analysis – USDCAD struggles to cement gains as bearish bias overpowers

Posted on March 2, 2021 at 11:46 am GMT

USDCAD is somewhat caught between the 200- and 50-period simple moving averages (SMAs) after the impressive rally from the 3-year low of 1.2467. The downturn in the red Tenkan-sen line together with the flattening blue Kijun-sen line are indicating a fading positive drive, while the sliding SMAs are adding weight onto a deteriorating picture. The short-term oscillators are also suggesting bullish momentum is dwindling. The MACD, above the zero mark, is dipping lower under its red trigger line, while the [..]

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