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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
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
More View more
Real Time News
  • Heads Up:🇯🇵 Bank Lending YoY (JUN) due at 23:50 GMT (15min) Expected: 7.2% Previous: 4.8% https://www.dailyfx.com/economic-calendar#2020-07-07
  • The ASX 200 and AUD/JPY are at risk of losses as cases of Covid-19 continue to climb in Victoria, Australia’s second-most populous state. Get your #ASX market update from @DanielGMoss here: https://t.co/O0LNvhy4eY https://t.co/D0gLVmr3Oy
  • Will be discussing the outlook for equities such as the #DowJones and covering the growth-linked Australian and Canadian Dollars. Signup below! #AUDUSD $USDCAD https://t.co/3zrxxRtpEf
  • If you missed yesterday's live coverage of the #RBA rate decision where I discussed the outlook for the Australian Dollar, check out the recording below - https://t.co/KyXcN0ExHg
  • #AUDJPY May Extend Losses as Growing #Virus Cases Sour Risk Appetite⬇️ https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/07/07/AUDJPY-May-Extend-Losses-as-Growing-Virus-Cases-Sour-Risk-Appetite.html
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/12:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/G4L3ed3Lj4
  • The US Dollar is pressured as rising coronavirus cases fail to dent 2021 GDP bets. Could the Singapore Dollar, Indonesian Rupiah, Philippine Peso and Malaysian Ringgit rise? Find out from @ddubrovskyFX here:https://t.co/u1qhaIGGoC https://t.co/6APl3pMZhF
  • Join @ddubrovskyFX 's #webinar at 7:00 PM ET/11:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/NdLv5isHMg
  • A bullish 50-dma/200-dma crossover is about to be formed on the daily copper chart suggesting that further gains are likely in the short- to medium-term.Get your copper market update from @nickcawley1 here: https://t.co/arrykVq1nu https://t.co/bjmKvS7V0y
  • Hong Kong Monetary Authority (HKMA) boosts intervention to $HKD 10.331 billion to defend $USD currency peg
USD/CAD Snaps Monthly Range Even as BoC Warns of ‘Transitory Factors’

USD/CAD Snaps Monthly Range Even as BoC Warns of ‘Transitory Factors’

2018-08-27 15:00:00
David Song, Strategist

Canadian Dollar Talking Points

USD/CAD remains under pressure even as the Bank of Canada (BoC) tames expectations for another rate-hike in 2018, and the exchange rate may continue to track the downward trending channel from late-June as it snaps the monthly opening range.

Image of daily change for major currencies

USD/CAD Snaps Monthly Range Even as BoC Warns of ‘Transitory Factors’

Image of daily change for usdcad

USD/CAD has struggled to hold its ground following the unexpected uptick in Canada’s Consumer Price Index (CPI), and the Canadian dollar may exhibit a more bullish behavior over the coming days as updates to the Gross Domestic Product (GDP) report is anticipated to show the growth rate expanding 3.1% in the second-quarter of 2018.

Signs of stronger growth should encourage the BoC to prepare Canadian households and businesses for higher borrowing-costs as the central bank is in the process of normalizing monetary policy, and Governor Stephen Poloz & Co. may adopt a more hawkish tone going into 2019 as the ‘Governing Council expects that higher interest rates will be warranted to keep inflation near target.’

However, recent remarks from Governor Poloz suggests the BoC is in no rush to deliver another rate-hike as the recent pickup in price growth is largely drive by ‘transitory factors,’ and it seems as though the Governing Council will retain the current policy at the next meeting on September 5 as the core reading for inflation is ‘very close to target.’

Image of bank of canada calendar

With that said, the BoC may stick to its current approach of delivering two 25bp rate-hikes per year, but positive developments coming out of the region may push the central bank to extend the hiking-cycle as ‘Canada’s economy continues to operate close to its capacity.’

Nevertheless, downside targets remainder on the radar for USD/CAD as it slips to a fresh monthly-low (1.2956), and the exchange rate stands at risk of facing further losses as the bearish momentum appears to be gathering pace. Keep a close eye on the Relative Strength Index (RSI) as it comes up against the upward trend from earlier this year, with a break of trendline support highlighting a bearish signal for dollar-loonie. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

USD/CAD Daily Chart

Image of usdcad daily chart
  • A close below the 1.2980 (61.8% retracement) to 1.3030 (50% expansion) region raising the risk for a move back towards 1.2830 (38.2% expansion), which largely lines up with the 200-Day SMA (1.2837) with the next downside region of interest coming in around 1.2830 (38.2% retracement).
  • Next downside region of interest comes in around 1.2720 (38.2% retracement) to 1.2770 (38.2% expansion) followed by the 1.2620 (50% retracement) area.
  • However, another failed attempts to close below the 1.2980 (61.8% retracement) to 1.3030 (50% expansion) region raises the risk for a move back towards the 1.3130 (61.8% retracement) area, which sits just beneath the monthly-high (1.3175).
Image of DailyFX economic calendar

Additional Trading Resources

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

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


News & Analysis at your fingertips.