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
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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/IgUIG55MbH
  • Supply constraints, rebounding global demand and rising inflation expectations may drive crude oil prices higher in the near term. Get your market update from @DanielGMoss here: https://t.co/ezPoAwcJt7 https://t.co/NMfk1cYSvE
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/OiRiBVeuzL
  • Crude Oil Prices Aiming Higher on OPEC Surprise, Inflation Expectations - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/03/06/Crude-Oil-Prices-Aiming-Higher-on-OPEC-Surprise-Inflation-Expectations.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $CL #Crudeoil #OOTT #OPEC https://t.co/AKvXWX9DLQ
  • Given the size of the rally in the eleven months preceding the beginning of the current decline a broader sell-off looks warranted. Get your market update from @PaulRobinsonFX here: https://t.co/UxZiSulpwB https://t.co/raXvlzkGbV
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/lp0tmKS9WR
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/3bOSIBeID9
  • Rising yields and US Dollar creates a weak environment for gold, which trades at a 9-month low. Get your market update from @JMcQueenFX here: https://t.co/lh6Qb2qxin https://t.co/MRAYe57e1A
  • RT @FxWestwater: US Dollar Fundamental Forecast: US Dollar Eyes Inflation Data After NFP Boost Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2021/03/06/US-Dollar-Fundamental-Forecast-US-Dollar-Eyes-Inflation-Data-after-NFP-Boost.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $DXY https://…
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/NvEAeWkBP1
USDCAD Price Outlook - Canadian Dollar Remains Firm Ahead of BoC Policy Announcement

USDCAD Price Outlook - Canadian Dollar Remains Firm Ahead of BoC Policy Announcement

Nick Cawley, Strategist

Canadian Dollar Price, News, and Analysis:

  • Bank of Canada to leave interest rates unchanged.
  • US dollar weakness and robust oil complex fuel USDCAD demise.
Advertisement

The Bank of Canada is expected to leave its overnight interest rate unchanged at 0.25% tomorrow and will also maintain its forward guidance and QE program. The bank sees the economy growing by 4% in 2021 and 4.5% in 2022 after an expected decline of around 5.5% in 2020. The banks’ last meeting on October 28 also noted that ‘oil prices remain about 30% below pre-pandemic level’ but this has changed with the oil complex rallying around 20% since those comments, underpinning the Canadian dollar, especially against a weak US dollar. A nod to the strength of the oil market by BoC governor Tiff Macklem tomorrow may well boost the Loonie further.

How Central Banks Impact the Forex Market

The daily USDCAD price chart shows the ongoing weakness in the pair with support levels broken with relative ease. In late-July the pair made a bearish ‘death-cross’ – the 50-sdma trading through the 200-sdma – while USDCAD trades below all three moving averages. The pair has found some support around the 1.2770 area but this is very recent and may not hold for long. Below here we go back to lows seen in May 2018. USDCAD may find some support from the CCI which shows the pair in extreme oversold territory

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Nick Cawley
Trading Forex News: The Strategy
Get My Guide

USDCAD Daily Price Chart (April – December 8, 2020)

USDCAD Price Outlook - Canadian Dollar Remains Firm Ahead of BoC Policy Announcement{{SENTIMENT|Learn How to Use Sentiment in Your Trading Strategy}}

Retail trader data show 73.95% of traders are net-long with the ratio of traders long to short at 2.84 to 1.Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current USD/CAD price trend may soon reverse higher despite the fact traders remain net-long.

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 via Twitter @nickcawley1.

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

DISCLOSURES