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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
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
  • Heads Up:🇦🇺 Westpac Consumer Confidence Index (MAY) due at 00:30 GMT (15min) Previous: 118.8
  • Bitcoin and Litecoin are moving higher after Tesla CEO Elon Musk's Twitter dealings injected volatility into the crypto market. Get your #cryptocurrency market update from @FxWestwater here:
  • 9 out of 11 S&P 500 sectors ended lower, with 79.2% of the index’s constituents closing in the red. Energy (-2.63%), industrials (-1.47%) and financials (-1.34%) were among the worst performers, whereas real estate (+0.17%) outperformed.
  • Gold Price Forecast: XAU/USD Bid on Weak Dollar, Softer Yields -via @DailyFX Link to Full Analysis: $XAUUSD $GLD $GC_F
  • The US Dollar is losing ground against a few ASEAN counterparts. USD/SGD, USD/IDR and USD/PHP seem to be maintaining a downside bias. USD/THB may rise. Get your market update from @ddubrovskyFX here:
  • Treasury Sec. Yellen: - Investments and tax proposals in "Jobs Plan" will enhance net profitability of corporations, improve global competitiveness - These are investments to make the economy more competitive and sustainable
  • Treasury Sec. Yellen: - Corporate sector must bear its fair share, plan to return corporate tax toward the historical norm - We will target incentives for companies to move funds, operations overseas
  • Treasury Sec. Yellen: - We must improve public R&D to maintain America's technological edge - We must build support systems to improve quality of life and opportunities for those most impacted by wealth inequality
  • Treasury Sec. Yellen: - We must reorient the framing of US fiscal policy - Poor US fiscal policy has meant infrastructure wasn't maintained or modernized
  • Treasury Sec. Yellen: - Innovation required from public & private sector to improve the economy - We must invest in public infrastructure and institutions that drive productivity
Canadian Dollar Forecast: USD/CAD Path of Least Resistance is Lower

Canadian Dollar Forecast: USD/CAD Path of Least Resistance is Lower

Justin McQueen, Analyst

CAD Analysis and Talking Points

  • USD/CAD | Path of Least Resistance is Lower
  • Canadian Dollar Shorts at Risk of Unwind
  • Canadian Dollar Technical Levels

USD/CAD | Path of Least Resistance is Lower

The Canadian Dollar is on the front against the US Dollar with USD/CAD finally breaking support at 1.3135. Yesterday’s Fed announcement had been as expected with Jay Powell confirming average inflation targeting, albeit the policy change had a level of ambiguity to it, which is likely to be cleared up at the September FOMC meeting. The drop in USD/CAD is largely based on the USD equation with the Canadian Dollar in fact weaker against its other counterparts. Month-end rebalancing is the usual suspect, which has exacerbated the declines in the greenback.

However, the path of least resistance for USD/CAD remains lower, while the consensus trade seems to be that the Loonie is in need of playing catch up with the rest of G10 FX. In turn, 1.3000 is the obvious target on the downside with risks of an extension to yearly low at 1.2956.Alongside this, positioning remains short on the Loonie and thus an extension of losses in USD/CAD risks being further exacerbated by an unwind bearish bets.

Canadian Dollar Shorts at Risk of Unwind

Canadian Dollar Forecast: USD/CAD Path of Least Resistance is Lower








2020 Low




Canadian Dollar Muted Response to Outdated GDP

Unsurprisingly, the Canadian Dollar saw a very muted reaction to the Q2 GDP data given its backward looking view of the economy . While the data confirms a record contraction (Q2 GDP -38.7% annualised), focus is on the path of the recovery as opposed to the depth of the crisis. For the meanwhile, US Dollar selling is the dominant theme across the FX space.

DailyFX Economic Data and Events Calendar

USD/CAD Price Chart: Weekly Time Frame

Canadian Dollar Forecast: USD/CAD Path of Least Resistance is Lower

Source: IG Charts

Top 10 Candlestick Patterns To Trade the Markets

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