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.

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
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
Wall Street
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • 🇯🇵 Foreign Bond Investment (10/APR) Actual: ¥1714.4B Previous: ¥375.1B https://www.dailyfx.com/economic-calendar#2021-04-14
  • Heads Up:🇯🇵 Foreign Bond Investment (10/APR) due at 23:50 GMT (15min) Previous: ¥377B https://www.dailyfx.com/economic-calendar#2021-04-14
  • 5 out of 11 S&P 500 sectors ended higher, with 51.1% of the index’s constituents closing in the green. Energy (+2.91%), financials (+0.66%) and materials (+0.64%) were among the best performers, while consumer discretionary (-1.17%) and information technology (-1.15%) trailed. https://t.co/FMscTetRLb
  • The Euro has regained lost ground against its major counterparts recently. Are further gains in the offing or is this just a short-term countertrend correction? EUR/USD, EUR/JPY, EUR/GBP, EUR/NZD key levels. Get your market update from @DanielGMoss here:https://t.co/BK1ezTva9R https://t.co/FpTQ6vUjys
  • The US Dollar may extend gains against the Thai Baht. But, its price action within USD/SGD, USD/PHP and USD/IDR seem to be favoring more range-bound trading conditions. Get your market update from @ddubrovskyFX here:https://t.co/DYCLXAFcCr https://t.co/HSQSmci2Fb
  • The Turkish central bank is on tap tomorrow. You may recall that President Erdogan removed Governor Naci Agbal about a month ago. The benchmark rate is at 19% heading in... https://t.co/GFyKzB3DfF
  • Heads Up:🇺🇸 Fed Kaplan Speech due at 22:05 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-04-14
  • US CDC meeting on Johnson & Johnson shot finishes without a vote, more data needed - BBG
  • NZD/USD attempts to negate a head-and-shoulders formation after defending the March low (0.6943). Get your $NZDUSD market update from @DavidJSong here:https://t.co/QLYcoTUdCG https://t.co/y5wpl479Av
  • #Bitcoin retreats from all-time highs, down 1.5% on the day #BTC $BTCUSD https://t.co/XUZZmTrhgs
USD/CAD Rate Approaches October High Ahead of BoC Fireside Chat

USD/CAD Rate Approaches October High Ahead of BoC Fireside Chat

David Song, Strategist

Canadian Dollar Talking Points

USD/CAD retains the advance from earlier this week despite the reaction to Canada’s Consumer Price Index (CPI), and fresh comments coming out of the Bank of Canada (BoC) may spur a run at the October high (1.3348) as the central bank alters the outlook for monetary policy.

USD/CAD Rate Approaches October High Ahead of BoC Fireside Chat

Signs of sticky price growth sparked a bullish reaction in the Canadian Dollar as the headline reading for inflation held steady at 1.9% in October. However, the move was short lived, with USD/CAD pushing to a fresh weekly high (1.3328) ahead of the fireside chat with BoC Governor Stephen Poloz.

The development may encourage the BoC to keep the benchmark interest rate on hold at its last meeting for 2019 as “the Bank expects inflation to track close to the 2 percent target over the projection horizon,” but the central bank appears to be on track to follow its major counterparts as Governor Poloz and Co. anticipate the Canadian economy “to slow in the second half of this year to a rate below its potential.”

Image of Bank of Canada interest rate decisions

In turn, the BoC may prepare households and businesses for an imminent rate cut as the “Governing Council considered whether the downside risks to the Canadian economy were sufficient at this time to warrant a more accommodative monetary policy as a form of insurance.”

The remarks suggest the BoC will take a preemptive approach in managing monetary policy as the “Governing Council is mindful that the resilience of Canada’s economy will be increasingly tested as trade conflicts and uncertainty persist.

As a result, a batch of dovish comments from Governor Poloz is likely to drag on the Canadian Dollar, and the central bank may continue to change its tone at the next meeting on December 4 amid the weakening outlook for global growth.

With that said, the Canadian Dollar may exhibit a more bearish behavior over the remainder of the week, and the shift in the BoC’s forward guidance may keep USD/CAD afloat especially as the Federal Reserve appears to be moving away from its rate easing cycle.

Sign up and join DailyFX Currency Strategist David Song LIVE for an opportunity to discuss potential trade setups.

USD/CAD Rate Daily Chart

Image of USD/CAD daily chart

Source: Trading View

  • Keep in mind, the rebound from the 2019-low (1.3016) has failed to generate a test of the Fibonacci overlap around 1.3410 (38.2% expansion) to 1.3420 (78.6% retracement), with the exchange rate largely tracking sideways as it remains stuck in the range bounce price action from the third quarter.
  • At the same time, the flattening slopes in the 50-Day (1.3215) and 200-Day SMA (1.3275) warn of range-bound conditions as the moving averages appear to on their way to converge with one another.
  • More recently, USD/CAD has pushed back above the 1.3220 (50% retracement) region following the failed attempt to test the 2019 low (1.3016), with the October high (1.3348) now on the radar.
  • Need a break/close above the Fibonacci overlap around 1.3280 (23.6% expansion) to 1.3330 (38.2% retracement) to open up the next topside hurdle around 1.3410 (38.2% expansion) to 1.3420 (78.6% retracement).

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 2019.

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES