USDCAD news - page 14
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
USD/CAD drops over 1%, hits 2-1/2 week lows in early trade
The U.S. dollar dropped to two-and-a-half week lows against its Canadian counterpart on Wednesday, as demand for the greenback continued to weaken after rising sharply in last week's sessions.
USD/CAD hit 1.2217 during early U.S. trade, the pair's lowest since May 22; the pair subsequently consolidated at 1.2207, tumbling 1.03%.
The pair was likely to find support at 1.2167, the low of May 22 and resistance at 1.2442.
The greenback weakened as investors continued to lock-in profits from the currency's recent rally after an above forecast U.S. jobs report on Friday underlined expectations that the Fed could start to raise rates at its September meeting.
The loonie was higher against the euro, with EUR/CAD declining 0.57% to 1.3834.
Sentiment on the euro remained fragile as Athens was expected to resume talks on a cash-for-reforms deal with its international lenders later in the day.
Greece’s bailout agreement with the European Union and the International Monetary Fund is set to expire at the end of this month and it cannot make further debt repayments without a new deal.
The single currency had strengthened earlier as a selloff in European government bonds continued, with German 10-year bund yields rising to the highest levels since September 2014 earlier Wednesday.
German bund yields act as benchmarks for European financial markets and higher yields push the euro higher against the dollar. Yields rise as prices fall.
source
April 2015 Canadian new house price index 0.1% vs 0.1% exp m/m
Canadian new house price index data for April
USD/CAD forecast for the week of June 15, 2015
The USD/CAD pair fell during the course of the week, but found enough support at the 1.23 level to turn things back around a little bit. Quite frankly, we see resistance at the 1.24 and the 1.25 handles, and support at the 1.22 level. In other words, this is a market that’s going to be very difficult on longer-term traders. With that, we will leave of the trading to the short-term back and forth high-frequency type guys, and stand on the sidelines waiting for a clearer signal to get involved.
USD/CAD Forecast June 15-19
The Canadian dollar enjoyed an excellent week, as USD/CAD dropped about 140 points. There are 7 events this week. Here is an outlook on the major market-movers and an updated technical analysis for USD/CAD. In the US, data was generally upbeat, but traders were hesitant to buy the greenback ahead of the Fed Statement. In Canada, Building Permits posted was unexpectedly strong.
read more
USD/CAD: Loonie Flat, Traders Wait for Fed
The USD/CAD pair is not moving significantly up or down as traders anxiously await the results of the Federal Open Market Committee (FOMC) meeting on Wednesday.
The loonie edged down 0.05% to C$1.2329 against the greenback, after briefly hitting the intraday high of C$1.2310.
Trading is likely to remain cautious until the conclusion of the FOMC meeting on Wednesday.
"We are seeing bit of pre-FOMC consolidation. The FOMC will shake us out of these ranges on Wednesday, but we are going to see tight ranges until then. What develops out of the Fed tomorrow will set up trading," director of foreign-exchange strategy at CIBC World Markets, Bipan Rai, told WBP Online.
The Fed is unlikely to hike rates at this week's meeting, although there is still a slight possibility for the central bank to move rates. A majority of analysts project that a lift-off is more likely to happen at September's meeting.
"We expect a September hike, so there could be some signals going ahead — maybe a change in guidance within the statement. We are slightly a bit more dovish on the forecast coming out of the Fed," Rai said. "There will likely be an emphasis on ongoing data dependence and slow rate hikes going forward."
Moreover, Fed Chair Janet Yellen will be holding a press conference, where she may hint about when the bank plans to increase its interest rates. Traders would like to see her confirm that the rates will be moving higher.
Meanwhile, the latest data released in the US on Tuesday was mixed. The number of housing starts fell 11.1% to 1.036 million in May, while building permits surged 11.8% to 1.275 million units.
In Canada, non-residents invested more than expected into Canadian securities in April, focusing on debt and shares. Foreigners bought $12.9 billion worth of securities, after an upwardly revised jump of $22.6 billion in March, Statistics Canada said on Tuesday. The data surprised in a positive way, as analysts were expecting foreigners to invest only $5 billion.
At the same time, there was a revival of Canadian investment into foreign securities, with $6.6 billion worth of assets purchased in April, following a divestment in the previous month.
Traders are also closely monitoring US inflation data, scheduled to be released on Thursday, as well as, Canadian retail and inflation data, both due out on Friday.
Oil prices gave the loonie a break on Tuesday, recovering slightly with WTI futures edging up 0.77% to $59.98 per barrel and Brent ticking down 0.44% to $63.67 per barrel.
source
Canada April wholesale trade sales +1.9% vs +0.3% expected
The lowly Canadian wholesale sales report from way back in April:
No reaction from the Canadian dollar.
USD/CAD has been quiet over the past week after the quick fall to 1.2210 from 1.2500. A small period of consolidation is ongoing around 1.2320. The downside is in focus today with WTI crude up $1 but the Fed is keeping trading light.
Canadian April retail sales -0.1% vs +0.7% expected
Highlights of the Canadian April retail sales report:
The revisions aren't positive enough to cover the severe weakness in the report, especially in the ex-autos category.
The main problem with this report is that it's two months old by the time it's released. Given that it's released at the same time as CPI this month, it's a mixed picture but this is bad enough to weigh on the loonie.
source
USD/CAD Weekly Fundamental Analysis – June 22-26, 2015 – Forecast
The USD/CAD recovered 46 points to trade at 1.2268 after the FOMC decision sent the US dollar tumbled. Markets recovered a bit on Friday. Only four meetings are left this year and Fed Funds futures are reflecting bets on a single increase in December, there seems ample room for a hawkish surprise in the event that news-flow surprises on the upside. Realized US data outcomes have notably improved relative to consensus forecasts since mid-May, opening the door for just such an outcome to weigh on risk appetite and sting the CAD.
Since the beginning of June, the USD had been on a slow but steady drop against the Canadian dollar, falling from a rate of 1.24 to a rate of 1.22. In light of Janet Yellen’s press conference in which prospects of further interest rate rises were clouded with uncertainty based on low inflation and wage performance, the USD fell against the CAD from a level of 1.23 to 1.215, before recovering to a rate of just above 1.22
The Bank of Canada had previously left interest rates unchanged at 3/4 percent on May 27. While a lower rate has helped promote Canadian exports through weakness in the loonie, a rate cut in Canada coupled with a rate rise in the United States would lead the CAD to excessively low levels, and I envisage the Bank of Canada will be keen to avoid this even if economic growth remains sluggish.
read more
USD/CAD Forecast June 22-26
The Canadian dollar had an uneventful week, as USD/CAD posted slight losses. The pair closed the week at 1.2259. The upcoming week is very quiet, with only one release this week. Here is an outlook on the major market-movers and an updated technical analysis for USD/CAD.
In the US, the news was mixed as inflation slipped, while employment and manufacturing numbers beat expectations. The Federal Reserve statement was clearly dovish, which didn’t help the US dollar. Over in Canada, inflation met expectations, but manufacturing and retail sales disappointed.
* All times are GMT.
USD/CAD: Loonie Trims Losses After Brief Plunge, US Data in Focus
The USD/CAD pair lost early morning gains, trading just slightly higher as traders digested the latest American macro data and the FOMC voting member Jerome Powell's speech.
The so-called loonie was down 0.14% trading at C$1.2326 against the greenback, after plunging to a two-week low of C$1.2378.
The pair's movements today were largely due to the greenback's drivers, according to analysts.
"This morning it has all been the US dollar story. The move in the US dollar versus the Canadian dollar was smaller than versus other currencies. The US dollar versus the euro was the main one and there was a big move in sterling and yen. But this also permeated into the Canadian dollar," senior currency strategist at Royal Bank of Canada, Greg Moore, told WBP Online.
"The US data is partly responsible for the bit of a fallback. Durable goods number was the main one today. It was enough to stop the rally that we’ve seen earlier in the day."
US durable goods orders for May posted -1.8%, down from last month's -1.5%, while analysts had expected to see a figure of -1%. Meanwhile, the core gauge improved as expected to 0.5% from -0.3%, the US Census Bureau reported on Tuesday.
Moreover, the expansion of manufacturing activity across America unexpectedly slowed in June, with the preliminary PMI print from Markit Economics coming in at 53.4, compared to the 54.0 seen in May.
read more