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
More View more
Real Time News
  • GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt. Get your market update from @HathornSabin here:https://t.co/3D8s2eIVWv https://t.co/JDGNwKYyOn
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sIauS https://t.co/JIT5it2HAt
  • Gold could suffer further near-term losses due to rising U.S. Treasury yields and a weak technical picture for price action. Get your weekly gold forecast from @DColmanFX here: https://t.co/g9QvH3L4It https://t.co/Vz98E0Bl9U
  • Gold has been trending lower after failing to clear resistance in the $1835 area earlier this month. Get your $XAUUSD market update from @DColmanFX here:https://t.co/3hm1g3BHgf https://t.co/MdTQKEBCBx
  • Key break here in the 10-year #Treasury yield as it rises to the highest since late June Took out 1.4230 resistance, and the 100-day SMA Eyes now on the 38.2% Fib extension at 1.4775 Also potential falling resistance from March https://t.co/4cI6l210ui
  • The move in rates after this week’s FOMC has continued and the 10 year yield has pushed up to a fresh two-month-high. Get your market update from @JStanleyFX here:https://t.co/CRWhuZ3sxD https://t.co/svHHqN2Zz8
  • S&P 500 contending with its proverbial ‘line in the sand’ as bulls and bears battle for directional control. How we close/trade around the 50-day moving average could serve as a noteworthy bellwether for risk trends headed into next week. I remain cautious below ~4,480. $SPX $ES https://t.co/qogkjs1Sx2
  • USD/JPY trades to a fresh monthly (110.57) amid the pickup in longer-dated US Treasury yields, and the exchange rate may stage a larger advance over the coming days. Get your market update from @DavidJSong here:https://t.co/dlNXOrJnM9 https://t.co/LCQd26W1zF
  • US yields continue to climb, with the 10-year Treasury yield trading above 1.45% $ZN $ZB https://t.co/N4EDfwD3nZ
  • $USDJPY bull thesis appears quite constructive. Technicals show topside breakout above trend resistance following a period of consolidation. Bond yields providing the fundamental catalyst. Eyes on Aug/YTD highs. A broad-based deterioration in market sentiment poses downside risk. https://t.co/AazskXGjHq
USD/CAD to Eye Fresh May Highs on Hawkish Fed Rhetoric, Dovish BoC

USD/CAD to Eye Fresh May Highs on Hawkish Fed Rhetoric, Dovish BoC

David Song, Strategist
USD/CAD to Eye Fresh May Highs on Hawkish Fed Rhetoric, Dovish BoC

Fundamental Forecast for CAD: Neutral

For more updates, sign up for David's e-mail distribution list.

The near-term advance in USD/CAD may gather pace in the week ahead should the Bank of Canada (BoC) endorse a dovish outlook for monetary policy, while Federal Reserve officials show a greater willingness to implement higher borrowing-costs over the coming months.

The BoC is widely anticipated to retain its current policy at the May 25 interest- rate decision, but Governor Stephen Poloz and Co. may adopt a more cautious outlook for the region as Finance Minister William Morneau sees the Alberta fire having a ‘modest’ impact on economic activity. Despite the stickiness in Canada’s Consumer Price Index (CPI), the slowdown in job growth accompanied by the weakening outlook for global growth may prolong the rebalancing of the real economy, and the loonie stands at risk of facing near-term headwinds should the BoC adopt a more cautious tone this time around.

At the same time, fresh comments from St. Louis Fed President James Bullard, San Francisco Fed President John Williams, Philadelphia Fed President Patrick Harker, Minneapolis Fed President Neel Kashkari, Dallas Fed President Robert Kaplan, Fed Governor Jerome Powell and Fed Chair Janet Yellen may fuel a further advance in USD/CAD as the central bank appears to be on course to further normalize monetary policy over the coming months. Even though the Federal Open Market Committee (FOMC) remains ‘data-dependent,’ the central bank may continue to prepare households and businesses for higher borrowing-costs especially as the U.S. economy approaches ‘full-employment.’

With that said, growing speculation for a looming Fed rate-hike may pave the way for a fresh monthly highs in USD/CAD, and the long-term upward trend may reassert itself over the near-term amid the deviating paths for monetary policy

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

DISCLOSURES