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
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
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
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
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
More View more
Real Time News
  • Brexit talks have made progress with deal possible by early November $GBP
  • Tune in to @PeterHanksFX 's #webinar at 11:00 AM ET/3:00 PM GMT as he discusses top levels to watch on #DAX, #DOW & more. Register here: https://t.co/Rwbt9avERj https://t.co/QjIdXcXkMI
  • 🇨🇦 BoC Interest Rate Decision Actual: 0.25% Expected: 0.25% Previous: 0.25% https://www.dailyfx.com/economic-calendar#2020-10-28
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.59%, while traders in NZD/USD are at opposite extremes with 74.82%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/0lCoXGMYkY
  • France preparing to announce stay at home order this week, according to industry sources $EUR
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: -1.46% Silver: -3.96% Oil - US Crude: -5.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/BW1IQulbTf
  • Heads Up:🇨🇦 BoC Monetary Policy Report due at 14:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-10-28
  • Heads Up:🇨🇦 BoC Interest Rate Decision due at 14:00 GMT (15min) Expected: 0.25% Previous: 0.25% https://www.dailyfx.com/economic-calendar#2020-10-28
  • The Dow ($DJIA) has opened to the biggest gap lower on the open since June 11th. It has taken out the 100-day moving average in turn https://t.co/VtCyT3ZpEh
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: -1.83% Wall Street: -2.14% FTSE 100: -2.40% France 40: -3.51% Germany 30: -3.91% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/u2yHbdPnew
Canadian Dollar Price: USD/CAD Primed for Range Breakout - BoC and CPI Ahead

Canadian Dollar Price: USD/CAD Primed for Range Breakout - BoC and CPI Ahead

2020-01-22 10:00:00
Nick Cawley, Strategist
Share:

Canadian Dollar (CAD) Price, Chart and Analysis

  • USD/CAD price stuck as important releases near.
  • Bank of Canada’s hawkish stance may change.

USD/CAD Price Watching the Bank of Canada Closely

A busy day for Canadian dollar traders with the Bank of Canada (BoC) rate decision and the latest look at domestic price pressures both released this afternoon. BoC governor Stephen Poloz will also give his latest update on the state of the Canadian economy later. For all market moving data releases and events, see the DailyFX calendar.

The BoC is expected to leave interest rates unchanged at 1.75% today, for the 10th consecutive meeting. Governor Poloz remains on the hawkish-side as Canadian inflation remains above the 2% target and shows little signs of moving lower. However recent data has shown patches of weakness in the Canadian economy with the December homes sales data coming in much lower than November’s number ( -0.9% vs prior 0.6%), while housing stats and building permits also missed expectations. Jobs and wages data have been mixed of late, with the unemployment rate falling to 5.6 from 5.9% while hourly wage rate fell to 3.8% from a prior 4.4%.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Nick Cawley
Traits of Successful Traders
Get My Guide

The Bank of Canada will also release its quarterly growth and inflation forecasts today and these may provide clues for traders going forward. Governor Poloz may well tone down his recent hawkish stance, especially if he believes that the current level of the Canadian Dollar is too high.

Live Data Coverage – Bank of Canada Rate Decision Webinar

USD/CAD Stuck in a Rut

The Loonie has traded in a tight range against the US dollar over the last two weeks with the pair kept in check by the January 9 candle’s range of 1.3026 to 1.3105. Support continues to hold whenever it is tested, while the upside may be vulnerable if BoC governor Poloz hints at a policy shift. The 20-dma is also providing support, while the CCI indicator continues to move higher and nears overbought territory. A trade and close above 1.3105 would also break a series of lower highs from mid-November.

USD/CAD Daily Price Chart (August 2019 – January 22, 2020)

USD/CAD daily price chart
USD/CAD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -20% 4% -13%
Weekly -18% 4% -11%
Learn how to use Sentiment in your trading strategy
Get My Guide

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 (CAD) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES