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
EUR/USD
Bearish
Oil - US Crude
Bearish
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
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Heads Up:🇦🇺 Wage Price Index YoY (Q2) due at 01:30 GMT (15min) Expected: 1.9% Previous: 2.1% https://www.dailyfx.com/economic-calendar#2020-08-12
  • If you missed this week's session on IGCS where I discussed recent developments in #SP500, #Gold, $AUDUSD and #Silver, check out the recording here - https://t.co/1Z0NfaJg4z
  • 🇦🇺 Westpac Consumer Confidence Index (AUG) Actual: 79.5 Previous: 87.9 https://www.dailyfx.com/economic-calendar#2020-08-12
  • The US Dollar is testing key support levels against the Singapore Dollar, Malaysian Ringgit, Philippine Peso and Indonesian Rupiah following persistent losses. Get your #ASEAN currencies market update from @ddubrovskyFX here: https://t.co/qqYDELqydd https://t.co/7ZUOZVxfi8
  • Heads Up:🇦🇺 Westpac Consumer Confidence Index (AUG) due at 00:30 GMT (15min) Previous: 87.9 https://www.dailyfx.com/economic-calendar#2020-08-12
  • The US Dollar may rise on haven demand as US-China tension grows over technology and intra-governmental friction after Trump’s executive orders on coronavirus relief aid. Get your market update from @ZabelinDimitri here:https://t.co/t4CL53z0DV https://t.co/xHGeruppKR
  • Is $AUDJPY readying to extend gains since late March? Prices have lately been trading within the confines of an Ascending Triangle, a bullish continuation pattern To learn more about this chart pattern, read here - https://www.dailyfx.com/education/technical-analysis-chart-patterns/ascending-triangle.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gMW2GfqVvY
  • New Zealand Prime Minister Jacinda Ardern: - No decisions yet on whether to delay election - Dissolution of parliament will be delayed (BBG) #Coronavirus #NewZealand
  • See my outlook for Asia-Pacific trade and how #NZD may react to the RBNZ rate decision - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/08/11/NZDUSD-May-Rise-on-RBNZ-Rate-Decision-Tech-Stocks-Extended-Losses.html https://t.co/Kw5VK2c4Cl
  • 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/YAzEromwmS
USDCAD 1-Week Implied Volatility at Highest Level Since January

USDCAD 1-Week Implied Volatility at Highest Level Since January

2019-03-05 20:49:00
Rich Dvorak, Analyst
Share:

Implied Volatility – Talking Points:

  • CAD traders eye upcoming event risk with a focus on Bank of Canada’s interest rate decision expected tomorrow
  • Currency option traders continue to price in higher anticipated price swings across EUR, GBP, AUD and NZD forex pairs
  • Looking to refine your trading skills? Check out the DailyFX Top Trading Lessons here!

USDCAD 1-Week implied volatility remains elevated as currency traders anxiously await the Bank of Canada’s interest rate decision on deck for 15:00 GMT tomorrow. Although the central bank is widely expected to keep its policy rate unchanged at 1.75 percent, follow-up commentary provided from BOC’s Governor Stephen Poloz will likely provide markets with an update on Canada’s economy and future policy outlook.

CURRENCY MARKAT IMPLIED VOLATILITY AND TRADING RANGES

USDCAD 1-Week Implied Volatility at Highest Level Since JanuaryUSDCAD 1-Week Implied Volatility at Highest Level Since January

Implied volatility on 1-Day and 1-Week currency options contracts has steadily crept higher in recent days. USDCAD implied volatility has been moving higher over the last 5 trading days with currency option hedging costs rising from 5.93 percent last Tuesday to 7.04 percent today. AUDUSD and NZDUSD also look to experience some price volatility as markets digest China’s weak economic growth estimates released this morning.

USDCAD CURRENCY PRICE CHART: DAILY TIME FRAME (JANUARY 30, 2018 TO MARCH 05, 2019)

USDCAD 1-Week Implied Volatility at Highest Level Since January

Recent USD strength on the back of relatively upbeat economic data has pushed the USDCAD higher as indicated on the chart above. Spot prices rebounded aggressively off uptrend support and the 61.8 percent Fibonacci retracement level yesterday but have remained range-bound between the 1.310 and 1.336 handles since the start of the year.

Despite near-term resistance at the 78.6 Fibonacci retracement line, the currency pair may break out above this price ceiling judging by USDCAD trading ranges derived from by implied volatility. BOC remarks that are more dovish than expected could serve as a fundamental driver for a topside breakout.

USDCAD RETAIL FOREX TRADER CLIENT POSITIONING

USDCAD 1-Week Implied Volatility at Highest Level Since January

Take a look at IG’s real-time Client Sentiment tracker to see the bullish and bearish biases of traders on other forex markets.

USDCAD traders have grown increasingly bearish on the currency pair ahead of the BOC’s rate decision with the number of traders net-long falling 7.6 percent while the number of traders net-short jumped 20.7 percent higher compared to last week. This has resulted in a short-to-long ratio of 1.41.

---

Written by Rich Dvorak, Junior Analyst for DailyFX

Follow on Twitter @RichDvorakFX

Check out our Education Center for more information on Currency Forecasts and Trading Guides.

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

DISCLOSURES

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.