All Articles Tagged - USDCAD

US Open Note – Riskier currencies cheer on dollar weakness as stocks heal

Posted on February 19, 2021 at 2:16 pm GMT

From optimism to doubts A surprising pickup in US weekly jobless claims proved on Thursday how easily market sentiment can switch from hopes of a speedy recovery to doubts of a robust expansion, triggering a pullback on Wall Street. Although weaker growth prospects tend to hurt bond yields, the US 10-year Treasury yield managed to rebound in the aftermath as the jobs data urged the need for Biden’s $1.9 trillion stimulus package, and therefore signalled an even bigger bond issuance. [..]

Daily Market Comment – Higher yields start to bite but dollar mired in recovery doubts

Posted on February 19, 2021 at 9:59 am GMT

Long-term Treasury yields climb again, dampening the mood in equity markets Stocks and gold slide, but dollar stumbles over poor jobless claims figures Pound hits $1.40, unbruised by big retail sales miss; aussie soars Surge in global bond yields spooks markets Global bond yields are creeping higher again after a brief reprieve mid-week. The record issuance of government bonds and expectations of even greater borrowing to fight the pandemic have sparked a bond selloff as the reflation trade gets into [..]

Technical Analysis – USDCAD finds roof at short-term SMAs; indicators signal bullish move

Posted on February 19, 2021 at 7:18 am GMT

USDCAD has reversed after the pullback off the long-term descending trend line, dropping below the short-term simple moving averages (SMAs). Negative sentiment appears revived; however, the technical indicators reflect contradicting signals. The RSI, in the negative area, is approaching the 50 level, while the stochastic oscillator is heading north after the bullish crossover within its %K and %D lines. If buying interest picks up and surpasses the strong bearish trend line, early tough resistance could occur at the 1.2950 high, where [..]

Daily Market Comment – Fed minutes take pressure off soaring yields but stocks slip

Posted on February 18, 2021 at 9:30 am GMT

US yields pull back as Fed says it will take “some time” to achieve its goals Stocks mostly down but Dow Jones rises amid rotation out of tech shares Dollar holds onto gains after huge jump in US retail sales Fed minutes restore some calm in bond markets Treasury yields fell back from one-year highs on Thursday as worries about higher inflation and Fed tightening subsided somewhat. The Federal Reserve played down the growing threat of inflation making a comeback [..]

US Open Note – US stocks set to join risk-on party; dollar index hovers near 90.00 support

Posted on February 16, 2021 at 2:11 pm GMT

Wall street may open stronger US traders will return to their desks after a long weekend, with stocks aiming to extract their own share of gains from the latest risk-on euphoria as reflected by the modest upside in S&P 500 futures. Although the risk-taking tendency was softer during late European hours, it remained robust enough to keep the German DAX 30 and the UK’s FTSE 100 index close to their Monday peaks.Perhaps the absence of any discouraging vaccine news and slowing global infection cases enhanced speculation that governments will [..]

Daily Market Comment – Yen crumbles as vaccine optimism intensifies, stocks extend gains

Posted on February 16, 2021 at 10:00 am GMT

Safe-haven yen sold across the board as vaccine rollouts fuel hopes of a swift recovery Stocks continue to soar even as global yields creep higher, but dollar fights back Pound scales fresh highs as aggressive vaccination campaign shines light on UK assets Vaccines keep optimism running high The expansion in the global rollout of Covid-19 vaccines drove risk appetite to new heights on Tuesday as investors became more confident that inoculating against the deadly virus will lead the global economy [..]

Week Ahead – Dollar’s comeback bid wobbles ahead of Fed minutes, flash PMIs

Posted on February 12, 2021 at 1:42 pm GMT

There will be no shortage of data releases in the coming week, with Japanese GDP, Australian job numbers and European and US flash PMIs being some of the highlights. But markets may still struggle to find new direction as there’s nothing on the horizon that is likely to alter the existing narrative on stimulus and vaccine expectations. The minutes of the Federal Reserve’s January policy meeting are also not anticipated to rattle markets. Though, in the absence of any exciting [..]

Technical Analysis – USDCAD erases weekly losses between key boundaries

Posted on February 12, 2021 at 8:38 am GMT

USDCAD neutralized its latest downside correction around the former key support region of 1.2687, with the price currently aiming to erase some of its weekly losses. The momentum indicators are providing little initiative for proper progress as the RSI and the MACD keep hovering around their neutral thresholds. Yet, some optimism remains intact as long as these oscillators move along an ascending trendline. The bottom line of the Ichimoku cloud, which cancelled the upturn from a 33-month low last week, [..]

Is the global vaccination race the new force in FX markets? – Special Report

Posted on February 11, 2021 at 1:31 pm GMT

The global campaign to vaccinate people against Covid-19 began in earnest in December, marking a historic milestone in the fight to bring an end to the pandemic. However, as governments scramble to get their hands on a limited supply of Covid vaccines, the disparity in the immunization rate between different nations is not going unnoticed in the FX world. Countries that are pulling out all the stops to vaccinate their population are seeing comparative strength in their currencies, whilst those [..]

Daily Market Comment – Cautious Fed and tame inflation unable to lift markets

Posted on February 11, 2021 at 9:30 am GMT

Stocks virtually flat despite promises of endless Fed liquidity FX quiet too as traders search for the next big theme US jobless claims and Disney earnings top the agenda today Is the stimulus narrative losing its bang? It was a quiet session across global markets, with most equity indices closing virtually unchanged near record altitudes and the prominent currency pairs trading in narrow ranges. Sometimes though, the lack of action itself speaks volumes. Investors had their gaze locked on the [..]

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