News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • US 10yr Treasury Yields are consolidating right around the 1.60% level today, trading around their highs of the pandemic. $USD https://t.co/9FrulBqqsC
  • #Gold, #Silver, #Dollar, $AUDUSD, $USDCAD and #Bitcoin Technical Levels - Webinar Archive - https://t.co/dkI9RkpZ4w
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.08% 🇬🇧GBP: -0.18% 🇦🇺AUD: -0.19% 🇯🇵JPY: -0.41% 🇪🇺EUR: -0.42% 🇳🇿NZD: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/768NGH3tot
  • #Gold just hit a fresh multi-month low as the precious metal dropped to trade around the $1,680 level. The metal broke through support alongside the rise in yields in February, falling from around $1,800 to its current lows. $XAU $GLD https://t.co/oJvQqE5gfR
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Germany 30: 3.35% France 40: 2.17% FTSE 100: 1.38% Wall Street: 1.31% US 500: 0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/fLfJGdE5Hl
  • Hey traders! Get your Monday market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/QO6zl1auQk
  • Really great article - apposite on International Women's Day but also a great read on the other 364 days of the year. @DailyFX h/t Weld Royal and Izaac Brook https://www.dailyfx.com/forex/fundamental/article/special_report/2021/03/08/Three-Women-Leaders-Changing-Finance-Economics-and-Business.html
  • $USDCHF has risen to fresh seven month highs today as the pair continues to trade above the 0.9300 level, at its highest levels since July of 2020. $USD $CHF https://t.co/spI5eIP3NM
  • Germany 30 IG Client Sentiment: Our data shows traders are now at their least net-long Germany 30 since Jan 09 when Germany 30 traded near 14,102.20. A contrarian view of crowd sentiment points to Germany 30 strength. https://www.dailyfx.com/sentiment https://t.co/kBUVfEOnTp
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Silver: 0.07% Gold: -0.74% Oil - US Crude: -1.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/wUkbYkPr1x
Canadian Dollar Adds To Gains Ahead of Central Bank Filled Week

Canadian Dollar Adds To Gains Ahead of Central Bank Filled Week

Tyler Yell, CMT, Currency Strategist

Talking Points:

  • Dollar calm ahead of Wednesday FOMC with priced in rate hike, eyes on next move
  • CAD sees gains compound on Wilken’s of BoC comment about preparation for possible hikes
  • Sterling value concerns growing, breakdown below 1.26 worrisome on charts
  • Sentiment Highlight: DAX longs believe in long-term Bull trend

The US Dollar news on Monday was centered not on an economic announcement or new release, but rather a 3-year Treasury auction. The 3-Yr US Treasury auction showed the highest action from indirect bidders, typically foreign central banks and mutual funds since 2009 per Bloomberg. The rise in interest would argue that there is a continued run toward quality over growth as the Nasdaq is working on a near 4% decline in recent trading sessions. Also worrisome is the flattening 2/10Yr US yield curve spread, which argues doubts over inflation and growth, which are both needed to encourage the Fed to reach their median dot plot forecast of 3.00%. Traders will listen on Wednesday to see whether the Fed believes they are still on pace for multiple hikes this year and next or whether they’re about to tune down their forecast, which would likely weigh on the USD.

A positive standout in today’s G10 landscape is the Canadian Dollar. The Canadian Dollar jumped across the board to become the day’s strongest currency after the Bank of Canada’s Carolyn Wilkens said how the central bank needs to be prepared to react to the nations broadening recovery that has encouraged policy makers and opening the door to the preparation of reduced stimulus and likely future rate hikes.

Would you like to know what our top minds are watching over the long-term in markets?

On the other side of the spectrum, the positive performance of the Canadian Dollar is the British Pound. Traders are likely actively looking for ways to play further GBP weakness whether through commodity exposure or against the JPY as GBP/JPY broke below the 200-DMA at 138.93. GBP is expected to trade on the defensive and is more likely to be played under the credo, “sell first and ask questions later,” on increasing political doubt after the UK election means that PM May is no longer leading Brexit negotiations with a majority government.

JoinTylerin hisDaily Closing Bell webinars at 3 pm ET to discuss tradeable market developments.

Where are the trades to be found among the low-volatility environment?Find out here!

Closing Bell’s Top Chart: June 12, 2017, USD/CAD resumes Friday’s moves with BoC Wilkin’s comments

Canadian Dollar Adds To Gains Ahead of Central Bank Filled Week

Tomorrow's Main Event:GBP Consumer Price Index (YoY) (MAY)

IG Client Sentiment Highlight:DAX longs believe in long-term Bull trend

The sentiment highlight section is designed to help you see how DailyFX utilizes the insights derived from IG Client Sentiment, and how client positioning can lead to trade ideas. If you have any questions on this indicator, you are welcome to reach out to the author of this article with questions at tyell@dailyfx.com.

Canadian Dollar Adds To Gains Ahead of Central Bank Filled Week

Germany 30: Retail trader data shows 42.6% of traders are net-long with the ratio of traders short to long at 1.34 to 1. In fact, traders have remained net-short since May 25 when Germany 30 traded near 12665.0; theprice has moved 0.1% higher since then. The number of traders net-long is 86.6% higher than yesterday and 114.2% higher from last week, while the number of traders net-short is 21.8% lower than yesterday and 15.8% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests Germany 30 prices may continue to rise. Traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current Germany 30 price trend may soon reverse lower despite the fact traders remain net-short.(Emphasis mine)

---

Written by Tyler Yell, CMT, Currency Analyst & Trading Instructor for DailyFX.com

To receive Tyler's analysis directly via email, please SIGN UP HERE

Contact and discuss markets with Tyler on Twitter: @ForexYell

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES