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. See our updated Privacy Policy here.

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
Bullish
Wall Street
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
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/iVOEuK40rn
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/ltEO5dpKux
  • WTI crude oil is currently trading up against major resistance via the 2019 and 2020 highs within the confines of a channel; something has to give. Get your market update from @PaulRobinsonFX here: https://t.co/MO9foRjm2y https://t.co/YhBFdvZDEb
  • The Dow Jones and S&P 500 outlook appears bleak in the near term as retail traders increase their upside exposure. At the same time, these indices confirmed bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/fKCHELbOxo https://t.co/eVDwmFTaIg
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/8B8hqHahm1
  • The US Dollar finished off an eventful week after CPI and retail sales injected volatility into markets. FOMC is now in the Greenback’s sights as taper talks linger. Get your market update from @FxWestwater here: https://t.co/MHi0lfQ93j https://t.co/4XetwYAaNd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/ZZRLV0Wkea
  • The Nasdaq 100 index has likely formed a bearish Gartley pattern, which hints at further downside potential. Negative MACD divergence on the weekly chart suggests that upward momentum may be fading. Get your market update from @margaretyjy here: https://t.co/GkMEkVA7YR https://t.co/E1vyCMVt6K
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1G4lMu https://t.co/2TpkkUu7Hg
  • Tesla boss Elon Musk is seemingly running the cryptocurrency market single-handed this week with his tweets prompting a massive sell-off before today’s sharp rally. Get your market update from @nickcawley1 here: https://t.co/qGci02osOP https://t.co/Yp24Sakrfl
Thin Docket Leaves Canadian Dollar to Risk-Trends

Thin Docket Leaves Canadian Dollar to Risk-Trends

Christopher Vecchio, CFA, Senior Strategist
Thin_Docket_Leaves_Canadian_Dollar_to_Risk-Trend_body_Picture_5.png, Thin Docket Leaves Canadian Dollar to Risk-Trends

Fundamental Forecast for Gold: Neutral

The Canadian Dollar had a strong week, finishing third best among the majors, only trailing the safe havens, the Japanese Yen and the US Dollar. The Canadian Dollar’s strength was most pronounced against the European currencies, gaining 2.67 percent, 2.65 percent, and 1.04 percent against the Euro, the Swiss Franc, and the British Pound, respectively. While the Canadian Dollar slightly outpaced the other commodity currencies, the Australian and New Zealand Dollars, the Canadian Dollar’s outlook is bolstered by some data at the end of the week that should help it stay afloat despite flows to safety and a deteriorating US economy (which is crucial as Canada’s largest trading partner).

On Friday, the Canadian labor market report for June showed that the Unemployment Rate dropped to 7.2 percent, its lowest rate since March, as the economy added 7.3K jobs. This is the lowest such Unemployment Rate for the Canadian economy over the past three-years. However, it comes at the expense of the Canadian labor force seeing a lower rate of participation; this could mean that participants are leaving the work force, which does not bode well for the future of the economy. Nonetheless, with the Participation Rate at 66.7 percent, above its recent low of 66.5 percent, there’s little to be concerned about in the near-term.

Also released on Friday were Building Permits for May, which blew by the consensus estimate of -1.0 percent at 7.4 percent growth. This easily wiped out April’s contraction of 4.4 percent. While this may add to speculation that the Canadian housing market is in the midst of a growing bubble. If this is the perspective that Bank of Canada policymakers take, then hawkish commentary should be expected in the near-future which should in turn be supportive of the Loonie.

We concentrate on these developments because the docket going forward is thin. Of note, and the only note, Housing Starts for June are due on Tuesday. According to a Bloomberg News survey, starts are expected to come in at 204.0K, slightly below the 211.4K starts in May. However, this would represent the sixth month in a row, and eighth time out of nine, that Housing Starts have been above 200.0K. This, like the Building Permits release from Friday, could fuel chatter from the Bank of Canada that a housing bubble is forming, which should spark speculation for higher rates in the future.

Aside from the Housing Starts print, nothing jumps off the docket. Instead, we expect the Canadian Dollar to trade closely to risk-trends, finishing neither first nor last among the majors. Like it did this week, the Loonie should finish near the top of the majors in a risk-off environment (behind the Japanese Yen and the US Dollar), or in the middle of the pack during a risk-on environment (its fundamentals are considerably stronger than most of the majors as well). –CV

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

DISCLOSURES