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
Mixed
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
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
GBP/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
USD/JPY
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
More View more
Real Time News
  • 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/sR7HqpK8BI https://t.co/Q6WGzHhudp
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/2MCG036HGH https://t.co/CbnRsuyRwi
  • #Gold saw its worst performance the past 5 days in 5 months as longer-dated government bond yields in developed countries rose Could this be the beginning of a turning point in #XAUUSD? https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/08/15/Gold-Price-Outlook-Will-XAUUSD-Brush-off-Worst-Week-in-5-Months.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/x2Indk3b7P
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/PT09ZsIOCa
  • The US #Dollar may rise, buoyed by haven demand as fiscal stimulus talks stagnate and swelling tensions between Washington and Beijing sink trade talks. Get your #currencies update from @DanielGMoss here: https://t.co/Wcw9PDUr67 https://t.co/gnYZYl6aLV
  • Upside in #CrudeOil struggling ahead of #OPEC meeting. Cartel likely to maintain wait and see approach. Get your #commodities update from @JMcQueenFX here: https://t.co/gNHHKoTUzm https://t.co/eF40DRIBJ5
  • #Gold had some big moves last week, and while vol is expected to die down a bit, it will be important to see if gold can hold its ground in the coming days/weeks. Get your #metals update from @PaulRobinsonFX here: https://t.co/N8a84hRnHN https://t.co/3fjodPHTDm
  • The S&P 500's refusal to hit a record and Dollar's anchor to range this past week is sign of summer liquidity conditions, but the quiet is not insurmountable. 'S&P 500 Record and Dollar Break Look to Stimulus and Trade to Override Seasonality' https://www.dailyfx.com/forex/video/daily_news_report/2020/08/15/SP-500-Record-and-Dollar-Break-Look-to-Stimulus-and-Trade-to-Override-Seasonality-.html https://t.co/mbvPkdQfYl
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkcMZBK https://t.co/kFk6ccU3Sk
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/aXSB0bG3y0
Canadian Dollar Mixed on BoC Decision; QE Continues as CPI Slumps

Canadian Dollar Mixed on BoC Decision; QE Continues as CPI Slumps

2020-07-15 15:00:00
Rich Dvorak, Analyst
Share:

CANADIAN DOLLAR OUTLOOK: USD/CAD, EUR/CAD, CAD/JPY PRICES REACT TO BANK OF CANADA DECISION

  • Bank of Canada (BOC) just released its latest monetary policy statement and left its target interest rate unchanged at 0.25%
  • USD/CAD and EUR/CAD prices jumped and spot CAD/JPY pivoted lower immediately after the BOC decision crossed the wires
  • Canadian Dollar (CAD) is coming under pressure as FX traders digest dovish central bank outlook underpinned by sluggish inflation expectations post-COVID

The Canadian Dollar is edging lower in the wake of the BOC statement that just crossed the wires. Bank of Canada officials agreed to leave the policy interest rate unchanged at 0.25% as expected. The central bank also reiterated that it will continue its QE program running at C$5-billion purchases of Canada government bonds per week.

Learn More – How Central Banks Impact the Forex Market

USD/CAD PRICE CHART: 1-MINUTE TIME FRAME (15 JULY 2020 INTRADAY)

USDCAD Price Chart Canadian Dollar Reaction to BOC Decision July 2020

USD/CAD price action pressed higher in the wake of the Bank of Canada decision. The Canadian Dollar remains in positive territory on the day against its USD peer, however, as the US Dollar trades broadly lower alongside other safe-haven assets.

USD/CAD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 12% -17% 1%
Weekly 43% -6% 25%
What does it mean for price action?
Get My Guide

Canadian Dollar weakness following the BOC statement is likely explained by dovish verbiage regarding interest rate and inflation outlook. The Bank of Canada governing council noted they plan on holding the overnight cash rate at its current level until economic slack is absorbed and inflation measures recover to target.

EUR/CAD PRICE CHART: 1-MINUTE TIME FRAME (15 JULY 2020 INTRADAY)

EURCAD Price Chart Canadian Dollar Reaction to BOC Decision July 2020

EUR/CAD price action whipsawed in the wake of the latest BOC statement. The Euro aimed higher initially against the Loonie, but the pop was short-lived with spot EUR/CAD since pivoting back lower to trade at fresh session lows. Perhaps a rejection of technical resistance around the 1.5500-handle, which is underpinned by May’s swing high, could partly explain the stretch of EUR/CAD weakness.

Introduction to Forex News Trading
Introduction to Forex News Trading
Recommended by Rich Dvorak
Introduction to Forex News Trading
Get My Guide

Additionally, the European Central Bank is on tap to release its own monetary policy update on Thursday, 16 July at 11:45 GMT, thus leaving the Euro at risk ahead of this potentially market-moving event. The EU Summit scheduled this week also looms large over the bloc currency, which threatens to strongarm the direction of EUR/CAD price action and possibly exacerbate FX volatility recently observed by the pair.

CAD/JPY PRICE CHART: 1-MINUTE TIME FRAME (15 JULY 2020 INTRADAY)

CADJPY Price Chart Canadian Dollar Reaction to BOC Decision July 2020

Spot CAD/JPY gyrated following the Bank of Canada decision. The Canadian Dollar dipped into negative territory against the interest-rate sensitive Japanese Yen, but CAD/JPY prices have since ripped back higher to trade flat on the day at the time of writing.

Also noteworthy, crude oil price action could be weighing on the Loonie in light of the strong direct relationship typically held between CAD and oil. Oil is currently facing headwinds from fresh OPEC+ commentary as Saudi Saudi Arabia and Russia agree to start unwinding recently implemented production cuts next month.

Read More – USD/CAD Eyes US Dollar Weakness and Bank of Canada Policy Decision

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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.