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
Bearish
Oil - US Crude
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
Wall Street
Bearish
Gold
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/KG9k8BnyD6
  • Gold Price Forecast: Long-Term Yields May Keep XAU/USD on the Backfoot - https://t.co/YV1gkiTPrq #GOLD $GLD $XAUUSD https://t.co/oT1lIcChN6
  • 🇳🇱 Inflation Rate YoY (FEB) Actual: 1.8% Previous: 1.6% https://www.dailyfx.com/economic-calendar#2021-03-04
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.03%, while traders in Germany 30 are at opposite extremes with 69.08%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rHzkW4zqv7
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/kIGn36WXO2
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.28% 🇳🇿NZD: 0.09% 🇨🇭CHF: 0.07% 🇨🇦CAD: 0.02% 🇯🇵JPY: -0.03% 🇪🇺EUR: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/d2JGjMhNQn
  • Heads Up:🇳🇱 Inflation Rate YoY (FEB) due at 05:30 GMT (15min) Previous: 1.6% https://www.dailyfx.com/economic-calendar#2021-03-04
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.33% US 500: -0.54% FTSE 100: -0.54% France 40: -0.67% Germany 30: -0.81% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/WVmqPR5R29
  • Risk trends are on the lam again with Nasdaq 100 threatening to usher the reversal, but I remain skeptical that fire will catch. Meanwhile, global 10yr yields are rising again, pulling gold down. Watch I'm watching: https://www.dailyfx.com/forex/video/daily_news_report/2021/03/04/Nasdaq-Breakdown-Raises-Risk-Trend-Questions-Yields-Push-Dollar-and-Gold.html https://t.co/2RFnWOaXa4
  • 🇯🇵 Consumer Confidence (FEB) Actual: 33.8 Previous: 29.6 https://www.dailyfx.com/economic-calendar#2021-03-04
USDCAD Soars After Bank of Canada Strikes Dovish Tone

USDCAD Soars After Bank of Canada Strikes Dovish Tone

Peter Hanks, Strategist

Bank of Canada Talking Points:

  • The Bank of Canada expectedly left its interest rate unchanged, but highlighted greater uncertainty in the rate path forward
  • USDCAD now looks to unemployment data from the US and Canada slated for release on Friday
  • Learn to trade news events like this one with our Trade the News Trading Guide

See how IG clients are positioned on the Dow, Crude oil and the US Dollar with our free IG Client Sentiment Data.

USDCAD is pressing higher after the Bank of Canada offered a dovish shift in language in their rate decision report. While the bank expectedly left its interest rate unchanged, dismal GDP numbers last week may have weighed on the bank’s outlook.

The rate decision report highlighted the recent slowdown experienced in the Canadian economy saying, “the fourth quarter slowdown was sharper, more broadly based than forecast.” Consequently, the bank found the economy in the first half of 2019 to be weaker than originally forecast. Together, the downward revisions worked to muddy the rate hike path and the bank noted the change saying there is “increased uncertainty about the timing of future rate increases.”

USDCAD Price Chart: 1-Minute Time Frame (March 6) (Chart 1)

USDCAD price chart

Given the greater uncertainty facing the bank, officials stressed data dependence moving forward. “Uncertainty about the pace of future rate hikes means the bank will be closely watching household spending, oil markets and global trade policy” officials said. The Canadian energy sector will continue to be a pivotal factor in Canadian rate hikes and the Canadian Dollar, as the bank highlighted the impact of cratering oil prices in their last rate decision.

USDCAD Price Chart: 4 – Hour Time Frame (January 2018 – March 2019) (Chart 2)

USDCAD price chart 4-hour

As for the broader outlook of USDCAD, the seemingly dovish tone helped to continue the move off support near 1.3122. After the report, the pair immediately traded higher to the 1.3440 range. Further, the greater uncertainty and data dependence highlighted by the Bank of Canada could provide a tailwind for the USD moving forward as the language is priced in to the market’s expectation of future rate hikes.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: CAD Technical Analysis Overview: USDCAD, EURCAD, CADJPY

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

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

DISCLOSURES