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.

Free Trading Guides
EUR/USD
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
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
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
Oil - US Crude
Bullish
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
Bitcoin
Mixed
More View more
Real Time News
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.31% 🇨🇦CAD: 0.12% 🇨🇭CHF: 0.09% 🇪🇺EUR: -0.09% 🇳🇿NZD: -0.11% 🇦🇺AUD: -0.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/z0x9cPG1TN
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Gold: 0.40% Silver: 0.09% Oil - US Crude: -0.47% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fpuNos9jTO
  • RT @bbands: Most crypto currencies are at or near Bollinger Band Squeeze levels. Time to pay attention.
  • Spot FX Update: $EUR 1.1119 $JPY 109.3505 $GBP 1.3337 $CAD 1.3182 $CHF 0.9842
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.07%, while traders in France 40 are at opposite extremes with 78.85%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rBitc06izt
  • Stocks in the #Dow Jones and S&P 500 are soaring alongside the Chinese Yuan as Beijing confirms trade negotiators have reached a partial deal in text with Washington. Get your market update from @RichDvorakFX here: https://t.co/v8Dy0Es2MY https://t.co/1f6xgxkXK0
  • Poll: Looking ahead to these final weeks of 2019, has the announced US-China phase 1 'deal' and UK election laying a clearer path for Brexit set global markets back on a course for sustained risk appetite (continued S&P 500 climb)?
  • @DailyFXTeam Something to note here is that PM Trudeau has pledged middle-class tax cuts (fiscal stimulus) which could dent #BoC easing bets. If his minority government can get it through, could offer a relief rally for #CAD as my majors-based index failed to breach support from 2018 $USDCAD https://t.co/oU1rEa67Wi
  • US Equities Update (Friday Close): $DJI +0.01% $SPX -0.01% $NDX +0.25% $RTY -0.57% $VIX -9.18%
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.30% France 40: 0.27% Wall Street: 0.00% US 500: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/gcAsEkyGoZ
USD/CAD Rebounds From Channel Support as Canada GDP Disappoints

USD/CAD Rebounds From Channel Support as Canada GDP Disappoints

2018-08-30 15:30:00
David Song, Currency Strategist
Share:

Canadian Dollar Talking Points

USD/CAD trades on a firmer footing as Canada’s Gross Domestic Product (GDP) report disappoints, and current price action warns of a larger recovery in the exchange rate as it snaps the bearish series carried over from the previous week.

Image of daily change for major currencies

USD/CAD Rebounds From Channel Support as Canada GDP Disappoints

Image of daily change for usdcad

The Canadian dollar struggles to hold its ground as the economy expands 2.9% in the second-quarter of 2018 versus projections for a 3.1% print, and the lackluster data print does little to sway the monetary policy outlook as the Bank of Canada (BoC) pledges to ‘take a gradual approach, guided by incoming data.

Image of bank of canada calendar

Keep in mind, the BoC appears to be on track to further embark on its hiking-cycle as the ‘Governing Council expects that higher interest rates will be warranted to keep inflation near target,’ but fresh remarks from Governor Stephen Poloz suggest the central bank will stick to its current path of delivering two 25bp rate hikes per year as the pickup in price growth is largely drive by ‘transitory factors. In turn, the BoC may merely attempt to buy more time at the next meeting on September 5, and the central bank may ultimately tame bets for an imminent rate-hike as ‘household spending is being dampened by higher interest rates and tighter mortgage lending guidelines.’

Nevertheless, there appears to be a broader shift in USD/CAD behavior as the exchange rate continues to track the downward trend carried from June, with the Relative Strength Index (RSI) highlighting a similar dynamic as the oscillator snaps the bullish formation from earlier this year. However, recent price action warns of a larger rebound as dollar-loonie bounces back from channel support and snaps the series of lower highs & lows carried over from the previous week. 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
  • Broader outlook for USD/CAD remains tilted to the downside as exchange rate fails to preserve the monthly opening range, with the next downside region of interest coming in around 1.2830 (38.2% expansion), which largely lines up with the 200-Day SMA (1.2837).
  • 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, failure to extend the recent series of lower highs & lows raises the risk for a larger rebound, with the former-support zone around 1.2980 (61.8% retracement) to 1.3030 (50% expansion) on the radar; need a close above the stated region to bring the 1.3130 (61.8% retracement) hurdle on the radar.
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.

DISCLOSURES

News & Analysis at your fingertips.