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
Bullish
Oil - US Crude
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • $GBPUSD continues to move higher, despite Friday’s weakness, as vaccination hopes continue to fuel positive sentiment despite ongoing lockdown fears and downbeat UK data. Get your market update from @nickcawley1 here: https://t.co/S8UoHzOwFN https://t.co/qI6UZdggvM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/6wxX6oQurn
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/w009tJEQZn
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/2AeO1AdD2M
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/INJz4NSugQ
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZX8cS https://t.co/qdrsi61CN8
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2021? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/IyQdfq29fz
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/R7pa7DsM8n
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/bTXkGN1CIM #DailyFXGuides https://t.co/EhdZpmkzaH
  • Even more remarkable than the record high levels of leverage registered in US equities this past week was the attention it garnered. Paying attention to risk is a threat when markets are this high and the docket as dense as it is this week. My outlook: https://www.dailyfx.com/forex/video/daily_news_report/2021/01/23/Dow-VIX-Tesla-and-Leverage-Reflect-Greater-Risk-to-the-Relentless-Bull-Market.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/KBOJIRPTQe
Canadian Dollar Sinks as Crude Oil Prices Swing, USD May Weaken

Canadian Dollar Sinks as Crude Oil Prices Swing, USD May Weaken

Daniel Dubrovsky, Analyst

Canadian Dollar, Crude Oil, US Dollar, Monetary Policy, Fiscal Stimulus – Asia Pacific Market Open

Canadian Dollar Sinks as Crude Oil Swings, US Dollar Mixed as Stocks Fall

The Canadian Dollar fell on Monday, responding negatively to intraday swings in sentiment-linked crude oil prices. CAD appeared to pay more attention to declines than gains in WTI as the Dow Jones and S&P 500 closed -3.04% and -2.93% to the downside in another volatile day on Wall Street. Investors weighed the implications of more aggressive Fed stimulus versus Congress being unable to pass a fiscal package.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Daniel Dubrovsky
Traits of Successful Traders
Get My Guide

Markets initially welcomed the Federal Reserve announcing unlimited quantitative easing. The central bank said that it will purchase bonds and mortgage-backed securities “in the amounts needed” to support a smooth functioning market. This is on top of already slashing rates to a 0.00 – 0.25% range and relaunching 2008 crisis-era tools to help boost liquidity in financial markets.

There is also much urgency in passing a fiscal package to accompany monetary policy given the limits of the latter prior to the coronavirus outbreak. A US$2 trillion relief bill was unable to gather enough votes in the Senate on Monday as lawmakers struggled to agree on the details of the measure. A delay in its passage may have been what erased gains that equities were able to pull off earlier in the Wall Street session.

The US Dollar had a mixed session, outperforming against the Canadian Dollar, Japanese Yen and British Pound. This is as UK Prime Minister Boris Johnson ordered the country’s citizens to stay home “except for essential reasons”. The Greenback continued to gain on some of its emerging market and ASEAN counterparts. Capital flight continues to pose a risk for markets in developing economies as the USD gains.

Tuesday’s Asia Pacific Trading Session – US Dollar, AUD/USD, NZD/USD, USD/CAD

A lack of key economic event risk places the focus for foreign exchange markets on sentiment during Tuesday’s Asia Pacific trading session. Futures tracking Wall Street are pointing cautiously higher, pointing to what may be a “risk-on” tilt to come. The haven-linked US Dollar is weakening with the growth-linked Australian Dollar attempting to progress higher.

US President Donald Trump mentioned that both Democrats and Republicans are “fairly close” on a stimulus bill. Democratic leader Nancy Pelosi is preparing a $2.5 trillion package. Signs of a further delay in passing a virus relief bill risks souring market mood. Otherwise the Greenback could see some weakness in the near term as AUD/USD and NZD/USD rise. USD/CAD could thus fall. The situation is highly fluid however.

Starts in:
Live now:
Jan 27
( 01:01 GMT )
Recommended by Daniel Dubrovsky
What Do Other Traders Buy/Sell Bets Say About Price Trends?
Register for webinar
Join now
Webinar has ended

Canadian Dollar Technical Analysis

USD/CAD continues to trade sideways under highs from 2016 which make for a key range of resistance between 1.4576 to 1.4690. Yet the dominant uptrend is being supported by two levels of rising support, “inner” and “outer” on the 4-hour chart below. Taking out the former may fuel a further correction, but it may not necessarily overturn the upward trajectory.

USD/CAD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -37% 11% -26%
Weekly -3% 15% 3%
What does it mean for price action?
Get My Guide

USD/CAD 4-Hour Chart

Canadian Dollar Sinks as Crude Oil Prices Swing, USD May Weaken

Chart Created Using TradingView

--- 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