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
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
Mixed
Gold
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
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/Jf96VhFDOp
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/Rjfdv8jLQV
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/a6qsFOcPUl
  • Build your USD/JPY trading strategy by honing your trading skills. Get your free insight here: https://t.co/hgVq7LwTSH https://t.co/xXZYbWqEwP
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/HUaCpOPird
  • Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Learn about the top ten trading mistakes and how you can avoid them here: https://t.co/i8E2AXtzF3 https://t.co/Hx1251BmAZ
  • @ddubrovskyFX Congrats Daniel!
  • After a week of roaring economic updates that failed to gain meaningful market traction; I am look to US inflation/rates, US-China trade relations and earnings in the week ahead to charge $SPX and $DXY. My outlook for the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/04/10/SP-500-Outlook-Carries-Risk-Trends-Dollar-Event-Heavy-on-USDJPY-USDCNH.html https://t.co/F9XkNl8Ks4
  • The Indian Rupee rose as the Nifty 50 slightly fell after the RBI left benchmark rates unchanged despite recent weakening inflation and a massive fiscal spending plan. Will USD/INR bounce? Find out from @ddubrovskyFX here:https://t.co/SwufKMOwfQ https://t.co/rfn4KRGUgl
  • Retail traders appear to be reducing long exposure in the Euro after recent gains. This hints that EUR/USD and EUR/JPY may rise in the near term, but could this trend last down the road? Find out from @ddubrovskyFX here:https://t.co/Y1d4DXeKEE https://t.co/oUv4y0TPq3
Canadian Dollar Forecast: USD/CAD Multi-Week Highs Under Pressure

Canadian Dollar Forecast: USD/CAD Multi-Week Highs Under Pressure

Nick Cawley, Strategist

Canadian Dollar Outlook: USD/CAD Price, Analysis and Chart

  • Multi-week high may prove fleeting resistance.
  • BoC dep gov Wilkins inflating the winter tires.

Brand New Q4 2019 CAD and USD Forecasts and Top Trading Opportunities

USD/CAD Pressing Multi-Week Highs on BoC Dovish Twist

Canadian interest rates are likely to be cut early next year with the country’s economy at risk from the global downturn. Bank of Canada dep gov Carolyn Wilkins said earlier this week that while a domestic recession isn’t in the central bank’s forecast, measures need to be in place in case events take a turn for the worse, giving the market a dovish nudge.

The Bank of Canada and other authorities must assess the risks and have the right safeguards in place. Ideally, you want to put the winter tires on before the snow falls. It not only protects you, but also everyone else who’s on the road,” wrote Wilkins. Deputy governor Wilkins comments on Tuesday sent USD/CAD sharply higher with the rally continuing on Wednesday.

Later today, Bank of Canada’s governor Stephen Poloz will be talking at an event in Toronto, just three weeks after saying that Canada’s economy will be increasingly tested. The central bank left interest rates unchanged at 1.75% but the next move is now expected to be lower with a rate cut being pencilled in by the markets for January. Governor Poloz’s words today will be parsed carefully for any further hints about future monetary policy measures.

The daily USD/CAD chart shows the recent weakening of the Canadian dollar against its American counterpart. USD/CAD recently broke and closed the 200-day moving average, a positive chart signal, and the pair are now nearing highs last seen around six weeks ago. To the upside the 23.6% Fib retracement level at 1.3335 guards the three recent highs around 1.3346-1.3348, which if broken will open the way to the September 3 high print at 1.3382 ahead of a potential rally all the way back to the May 31 high at 1.3565. Initial support off the 200-dma and Tuesday’s high/Wednesday’s low around 1.3270.

USD/CAD Daily Price Chart (November 2018 – November 21, 2019)

Canadian Dollar Forecast: USD/CAD Multi-Week Highs Under Pressure

IG Client Sentiment shows that traders are 77% net-short USD/CAD, a bullish contrarian bias.

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on the Canadian Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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

DISCLOSURES