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
Mixed
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
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
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.61% Gold: 0.23% Oil - US Crude: 0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/UQpIKV2jEZ
  • Natural gas prices have recaptured a key trendline after a major heatwave sent energy demand in the United States soaring. Get your market update from @FxWestwater here:https://t.co/7DdcMrObKp https://t.co/G3OuF7Y5IB
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.17% 🇦🇺AUD: 0.11% 🇪🇺EUR: 0.10% 🇬🇧GBP: 0.06% 🇨🇦CAD: 0.04% 🇯🇵JPY: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/lqLaaO04eh
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.38%, while traders in France 40 are at opposite extremes with 70.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/KYpAOemcJX
  • The US Dollar may gain versus ASEAN currencies like the Singapore Dollar, Thai Baht and Philippine Peso after the Fed projected 2 rate hikes by the end of 2023. All eyes on US PCE data. Get your market update from @ddubrovskyFX here:https://t.co/LaLVW8FFHI https://t.co/Y0FoP7A5ZW
  • Dow Jones Rebound May Lift Sentiment for Nikkei 225 and ASX 200 https://www.dailyfx.com/forex/market_alert/2021/06/25/Dow-Jones-Rebound-May-Lift-Sentiment-for-Nikkei-225-and-ASX-200.html https://t.co/G6PRAUQbla
  • Increased rate bets following June's FOMC rate decision roiled markets, including commodities. Crude oil received a boost on Iran's election, while gold and copper look to incoming inflation data out of the US. Get your market update from @FxWestwater here:https://t.co/iGAO4dasIU https://t.co/iwDTDzgaHg
  • So #PBOC unexpectedly increased liquidity injections yesterday for the 1st time since March Sold 30b #Yuan of 7-day reverse repos at 2.2%, up from usual 10b MSCI #EmergingMarkets index understandably happy, eyeing a Descending Triangle Learn more here - https://www.dailyfx.com/education/technical-analysis-chart-patterns/descending-triangle.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/j2r0KTHQ8M
  • 8 out of 9 Dow Jones sectors ended higher, with 93.3% of the index’s constituents closing in the green. industrials (+2.07%) financials (+1.62%) and communication services (+1.25%) outperformed, whereas materials (-0.06%) trailed behind. https://t.co/jgIcDOvItT
  • The Canadian Dollar may have more room to weaken looking at a Loonie index. USD/CAD is struggling to confirm a push above the 100-day SMA, watch the 4-hour chart for near-term clues. Get your market update from @ddubrovskyFX here:https://t.co/ezLH8Ky4a0 https://t.co/G4K7wuXiWx
CAD Correction on the Cards After Canadian GDP Data

CAD Correction on the Cards After Canadian GDP Data

Martin Essex, MSTA, Analyst

CAD TALKING POINTS:

- Canadian GDP data today will likely leave interest rate expectations unchanged.

- However, a brief “sell the rumor, buy the fact” rally is possible before the downtrend in CAD resumes.

Learn how to trade like an expert by reading our guide to the Traits of Successful Traders

TRADING THE NEWS: CANADA GDP

Canada GDP expectations

New to forex and want to find out more about trading CAD? Take a look at our Forex Trading Guides

The Canadian Dollar has continued to weaken against its US counterpart, as predicted here, but a brief rally could follow today’s Canadian economic growth data at 1330 GMT before the downtrend resumes. While the figures will likely leave Canadian interest rate expectations unchanged, a “sell the rumor, buy the fact” move could lift CAD temporarily.

The most important figure to look out for will be the third number in the table above – for quarter/quarter GDP growth annualized in the last three months of 2017. A higher than expected number would make an interest rate increase in Canada in the next few months a little more likely, while a lower than expected figure would reduce the chances of a rate rise.

However, the risks here are skewed. While better than forecast data would probably lift CAD, a weaker number might too as traders decide to take some of their profits from the recent sharp Canadian Dollar selloff illustrated here by a chart showing the rise in the US Dollar against it.

USDCAD PRICE CHART, HOURLY TIMEFRAME (FEBRUARY 1, 2018 – March 1, 2018)

Latest USDCAD hourly price chart

Chart by IG

For help to trade profitably check out the IG Client Sentiment data

CANADIAN INTEREST RATES IN FOCUS

At present, it seems likely that the Bank of Canada will leave interest rates on hold at its meeting on March 7 but the chances are roughly 50/50 that it will increase them at its following meeting on April 18, when it will publish its next Monetary Policy Report. While the prospect of an increase in rates should support the CAD, its weakness on a rallying USD, easier oil prices and concerns about the Nafta trade negotiations between the US, Canada and Mexico would likely resume once any correction is over.

In the meantime, note that from a technical perspective USDCAD faces strong resistance at 1.2917, only just above its current level, from the highs touched between late October and mid December last year. A move down to trendline support, currently at 1.2634 is therefore perfectly plausible before CAD weakens again.

USDCAD PRICE CHART, DAILY TIMEFRAME (October 17, 2017 – March 1, 2018)

Latest USDCAD daily price chart

Chart by IG

If you’d like to learn more about FX, listen in to our regular Trading Webinars

Meanwhile, here are some key messages when trading FX that hopefully you will find useful. Note that:

- Successful traders cut losses, and let profits run,

- Successful traders use leverage effectively, and

- Successful traders trade at the right time of day.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

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

DISCLOSURES