All Articles Tagged - USDCAD

FX year ahead 2021: Too much dollar pessimism?

Posted on December 22, 2020 at 6:48 pm GMT

It has been year of absolute chaos, but hopefully 2021 will be much calmer as the global economy heals its wounds. The overwhelming consensus in the FX arena is for the US dollar to sink further as the reflation trade dominates, lifting all other boats. The ‘catch’ is that much of this weakness may be baked in already. The story for the euro is not attractive either. While dollar weakness could dominate early on and push euro/dollar a little higher, [..]

Technical Analysis – USDCAD steadfast, re-targets the 200-MA

Posted on December 22, 2020 at 3:59 pm GMT

USDCAD is headed to retest the 200-period simple moving average (SMA), after finding a foothold on the cloud’s upper surface and the 100-period SMA around 1.2819. The price bounce came after the 200-period SMA curbed the rally, which started from the near 32-month low of 1.2687. The upturn in the 50-period SMA and the slowing downward pace of the 100-period SMA suggest some improvements in positive sentiment, which may well possibly shove the pair into a sideways market below the [..]

Daily Market Comment – Market panic vanishes amid signs of Brexit progress

Posted on December 22, 2020 at 9:33 am GMT

Sharp selloff turns into sharp rebound as UK waters down fishery demands US stocks and sterling stage epic comeback, close only a blip lower Similar story for the dollar, surrenders most virus-mutation gains Vaccines and liquidity are still the name of the game What selloff? US equities and sterling roar back Just when you think US stocks can bleed, dip-buyers return with a vengeance. The week kicked off with a substantial correction, the S&P 500 falling almost 2% amid worries [..]

Daily Market Comment – Dollar edges up amid the wait for elusive stimulus and Brexit deals

Posted on December 18, 2020 at 10:01 am GMT

Dollar selling eases as caution creeps in, but still set for big weekly losses The long wait for deals in Washington and Brussels takes edge off risk rally Stocks mixed, some volatility may lie ahead Dollar bears pause for breath as Congress in race against time The US dollar was attempting to end its week-long losing streak on Friday as doubts about how soon a stimulus deal in Congress and a Brexit trade pact between the UK and EU can [..]

Technical Analysis – USDCAD seeks a rebound but bears could be around the corner

Posted on December 18, 2020 at 8:05 am GMT

USDCAD’s sell-off is taking a breather around a new 32-month low of 1.2687, which is looking to be a suitable position for an upside reversal as the RSI and the Stochastics seem to have found a bottom in the oversold territory. The negative momentum in the MACD has also eased, backing the above narrative. On the upside though there are two key obstacles that the bulls should overcome first before they stage a notable rebound. The 1.2787 resistance is the [..]

Daily Market Comment – Two deals in the making and a Fed dilemma

Posted on December 16, 2020 at 10:10 am GMT

US congressional leaders close in on a stimulus deal as talks continue Brexit chatter lifts pound amid rumours a trade deal is within grasp Dollar on the backfoot ahead of least predictable Fed meeting of the year Hopes rise for a deal in Congress Hopes are running high on Capitol Hill that a stimulus deal can be reached after reported progress on Tuesday. US political leaders are set to meet again later today as they inch closer to agreeing on [..]

Technical Analysis – USDCAD’s bearish course stabilises around 32-month base

Posted on December 15, 2020 at 10:05 am GMT

USDCAD appears to have become moderately static after logging a near 32-month low of 1.2705 and forming a base around the 1.2700 handle. The flattening Ichimoku lines are backing this minor pause in the downside scenario, reflecting a condition of paused directional momentum. However, the pair’s predominant bearish tone continues to be aided by the downward sloping simple moving averages (SMAs). The short-term oscillators also display a conflicting picture in momentum. The MACD, in the negative region, is above its [..]

Daily Market Comment – Dollar steadies amid fresh virus restrictions; stimulus and Brexit talks linger

Posted on December 15, 2020 at 9:35 am GMT

Tighter virus restrictions dampen vaccine optimism; dollar halts slide, stocks struggle US stimulus talks gain momentum but still no agreement London lockdown knocks pound off its Brexit perch as ‘narrow path’ to deal eyed New virus curbs weigh on sentiment Optimism that an end to the global pandemic is within sight was unable to override the darkening clouds on the immediate horizon as Covid restrictions are on the up again. After Germany’s news that it is to enter a hard [..]

Technical Analysis – USDCAD’s bearish bias overpowers push higher

Posted on December 11, 2020 at 10:08 am GMT

USDCAD is finding some footing around the 1.2700 handle, while prevailing negative pressures are reinforcing downside risks. The dipping 200-day simple moving average (SMA) and the diving 50- and 100-day SMAs are strengthening the bearish structure. Additionally, the descending Ichimoku lines are further dampening the pair’s picture. The short-term oscillators presently reflect mixed signals in directional momentum. The MACD, in the negative region, is declining below its falling red trigger line. However, the RSI is pointing upwards and is trying [..]

Daily Market Comment – Stimulus hopes overpower virus surge, Brexit adventure continues

Posted on December 9, 2020 at 9:32 am GMT

Wall Street powers to fresh record highs as US stimulus deal draws closer Vaccine news lifts spirits too, dollar slips as haven demand fades Sterling all over the place as Boris Johnson heads to Brussels BoC policy decision on the agenda today – not much expected Christmas rally arrives early The stock market freight train keeps on rolling. Hopes that Congress will soon inject the world’s biggest economy with another dose of fiscal stimulus eclipsed a worrisome spike in new [..]

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