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
Bullish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 87.94%, while traders in EUR/USD are at opposite extremes with 71.17%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/wSWdSw9NMi
  • WTI crude oil price action has been quite volatile today around Iran nuclear deal talks. The commodity is currently down -1.2% on the session after falling as much as -4.3% from intraday highs. #OOTT $CL_F $USO https://t.co/IPeHsxVYO8
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: -0.14% FTSE 100: -0.17% Wall Street: -0.21% Germany 30: -0.22% France 40: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/7ak6BIkvMw
  • Biden administration delays revamp of Trump's blacklist for China investments -BBG $USDCNH $SHCOMP
  • $EURUSD breakout stalled (so far) around the same spot that caught the feb top fib from the same study that caught the low in march (at the 38.2) https://t.co/ikWed0YfwE https://t.co/OfvmSW2V4S
  • The USD/CAD breakdown has stalled into lateral technical support at 1.2048/61 and the focus is on a reaction off this mark. Get your $USDCAD @MBForex here:https://t.co/LMTzDyI1df https://t.co/hD74PjjJHk
  • US Dollar Outlook: DXY Index Hammered as Treasury Yields Ebb -via @DailyFX Link to Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2021/05/18/us-dollar-outlook-dxy-index-hammered-as-treasury-yields-ebb.html $USD $DXY #Trading https://t.co/2zVfDWI5Y7
  • AUD/USD attempts to retrace the decline following the update to the US Consumer Price Index (CPI) as it bounces back from the 50-Day SMA (0.7715). Get your $AUDUSD market update from @DavidJSong here:https://t.co/EIQ7utBH9A https://t.co/RcWf6JgYX5
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 87.64%, while traders in EUR/USD are at opposite extremes with 70.33%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/EhQn4EqJYE
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 0.06% Gold: -0.03% Oil - US Crude: -1.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ALjM4GEwOj
Canadian Dollar Poised For Pullback Amid Slowing Growth, Inflation

Canadian Dollar Poised For Pullback Amid Slowing Growth, Inflation

David Song, Strategist
Canadian_Dollar_Poised_For_Pullback_Amid_Slowing_Growth_Inflation_body_Picture_5.png, Canadian Dollar Poised For Pullback Amid Slowing Growth, Inflation

Fundamental Forecast for Gold: Bearish

The Canadian dollar continued to appreciate against its U.S. counterpart as currency traders increased their appetite for risk, but the loonie may struggle to hold its ground next week as the economic docket is expected to dampen speculation for a Bank of Canada rate hike. Indeed, gross domestic product is projected to increase 0.2% in May after expanding 0.3% the month prior, while input costs are expected to weaken for the second consecutive month in June.

As growth and inflation tapers off, market participants see the BoC maintaining its current policy over the next 12-months according to Credit Suisse overnight index swaps, and the central bank may have little choice but to carry its wait-and-see approach into the following year as the slowdown in the global economy drags on the recovery. However, as the record rise in household indebtedness continues to present the biggest domestic risk for the region, we are likely to see BoC Governor Mark Carney continue to talk up speculation for higher borrowing costs, and the central bank head may have little choice but to raise the benchmark interest rate from 1.00% in an effort to ward off a housing bubble. At the same time, the FOMC interest rate decision on tap for August 1 is likely to heavily influence the USDCAD as market participants weigh the outlook for monetary policy, and a less-dovish Fed may spark a short-term reversal in the exchange rate as it dampens the scope for another large-scale asset purchase program.

As the USDCAD bounces off of the lower bounds of the downward trending channel carried over from the previous month, the technical outlook certainly foreshadows a short-term correction in the exchange rate, and we may see the pair threaten the bearish trend as the dollar-loonie finds interim support around former resistance (1.0020-30). As the USDCAD appears to be carving out a higher low ahead of August, the upside break in the relatives strength index reinforces our call for a move back to the upside, and we may a bullish breakout over the near-term as the scope for a BoC rate hike deteriorates. - DS

http://www.dailyfx.com/technical_analysis/candlesticks/?candlestick=USD/CAD

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

DISCLOSURES