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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.44% 🇳🇿NZD: 0.07% 🇯🇵JPY: 0.05% 🇨🇦CAD: -0.03% 🇨🇭CHF: -0.07% 🇪🇺EUR: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/XqqrrlWAgH
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.20% US 500: 0.05% Wall Street: -0.00% France 40: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/32XnoceiRU
  • GBP/USD Faces a Risk of Reversal -British Pound to USD Price Forecast More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2019/12/11/GBPUSD-Faces-a-Risk-of-Reversal-British-Pound-to-USD-Price-Forecast-MK.html?CHID=9&QPID=917714 https://t.co/LsgLV9vBZ1
  • Final YouGov MRP Poll update $GBP https://t.co/vf9SsVARYo
  • LIVE IN 30 MIN: Join Currency Strategist @PaulRobinsonFX as he discusses important technical developments relevant to short to intermediate-term commodity and equity index traders. Register here: https://www.dailyfx.com/webinars/816147795?CHID=9&QPID=917720
  • USD/JPY Outlook Hints at Drop, Nikkei 225 May Join It - https://www.dailyfx.com/forex/technical/article/special_report/2019/12/11/USDJPY-Outlook-Hints-at-Drop-Nikkei-225-May-Join-It.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #USDJPY #technicalanalysis https://t.co/nFYCnCoIeX
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/10:30 AM GMT to gain insight on indices and commodities for the active trader. Register here: https://t.co/gghsFsZYlx https://t.co/ZKIWbxrDbl
  • If you are interested in UK equities, pre- and post-election, it's well worth taking a few minutes out to listen to this podcast 👍👍 @JeremyNaylor_IG @JoshWarner_IG @DailyFX https://t.co/hnB3c7aP59
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.02%, while traders in US 500 are at opposite extremes with 76.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dFrubKes93
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Gold: -0.03% Silver: -0.22% Oil - US Crude: -0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/7AaenKr6dx
Canadian Dollar May Fall on USD/CAD Reversal Cues, Trade War Fears

Canadian Dollar May Fall on USD/CAD Reversal Cues, Trade War Fears

2019-10-29 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • USD/CAD may reverse higher on bullish technical hints, markets eyeing BoC
  • Soft US data likely fueled spillover fears into Canada. Trade war fears rose
  • Australian Dollar awaiting CPI data as Japanese Yen looks to the BoJ ahead

Find out what the #1 mistake that traders make is and how you can fix it!

The Canadian Dollar was the worst-performing major on Tuesday, even failing to capitalize on a rise in crude oil prices during the US session. A clear catalyst seemed absent, but it might have been speculation that the Bank of Canada could deliver dovish forward guidance at its anticipated interest rate hold tomorrow. The Loonie holds the title as of one of the highest-yielding liquid currencies.

As such, the currency is particularly vulnerable to data that risks taking away its high-rate advantage. That might have stemmed from the United States, Canada’s top trading partner. In the US, housing prices in 20 cities on average declined about -0.2% m/m versus -0.1% expected. Meanwhile, local consumer confidence dipped to its lowest since June. The US Dollar also saw some weakness as dismal data spooked investors.

Disappointing US Data – Housing Prices and Consumer Confidence

Canadian Dollar May Fall on USD/CAD Reversal Cues, Trade War Fears

Check out the DailyFX Economic Calendar for updates on key even risk for the major currencies!

Meanwhile, risk trends were jawboned by the latest US-China trade war developments. A report from Reuters crossed the wires citing a US administration official that a “phase one” deal with China may not be signed at next month’s APEC meeting in Chile. Both the S&P 500 and MSCI Emerging Markets Index ended lower from yesterday, dropping potential technical signals of a top.

Wednesday’s Asia Pacific Trading Session

The next 24 hours are filled with plenty of event risk for currencies beginning with Wednesday’s Asia pacific trading session. The Australian Dollar will be eyeing third quarter local CPI data which risks disappointing relative to expectations, fueling RBA rate cut bets. Then at an unspecified time, the Bank of Japan will hold its October monetary policy announcement as the Yen awaits updated economic outlook prospects.

Join Analyst Dimitri Zabelin for LIVE coverage of Australian CPI data beginning at 00:15 GMT

As for risk trends, Asia Pacific markets may see market mood sour following the Wall Street trading session. This may boost the anti-risk Japanese Yen while weakening the sentiment-linked New Zealand Dollar. Though meaningful follow-through will likely have to wait until the Fed rate decision crosses the wires at 18:00 GMT. Afterwards, Chair Jerome Powell will speak at 18:30 GMT.

Canadian Dollar Technical Analysis

With the weakness in the Canadian Dollar, USD/CAD has left behind a Morning Star bullish reversal pattern on the daily chart. Upside confirmation opens the door to overturning the dominant downtrend that has prevailed since earlier this month. Though positioning signals offer a bearish-contrarian USD/CAD forecast. As such, it may be best to stand aside for the time being to let the fundamentals clarify the CAD outlook.

Join me later today at 1:00 GMT as I discuss what trader positioning is saying about the outlook for the US Dollar ahead of the FOMC!

Chart of the Day – USD/CAD Daily

Canadian Dollar May Fall on USD/CAD Reversal Cues, Trade War Fears

Chart Created Using TradingView

FX Trading Resources

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.