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
GBP/USD
Bearish
USD/JPY
Bearish
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
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
USDCAD Soars After Bank of Canada Strikes Dovish Tone

USDCAD Soars After Bank of Canada Strikes Dovish Tone

2019-03-06 15:10:00
Peter Hanks, Junior Analyst
Share:

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

News & Analysis at your fingertips.