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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
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
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
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • A decidedly mixed October US Retail Sales report. Not exactly encouraging in context of Q4’19 US GDP tracking at 1%, per @AtlantaFed. https://t.co/bmN2KH6z1q https://t.co/nAFhwXnc46
  • 🇺🇸 USD Retail Sales Ex Auto and Gas (OCT), Actual: 0.1% Expected: 0.3% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2019-11-15
  • 🇺🇸 USD Retail Sales Ex Auto and Gas (OCT), Actual: 0.2% Expected: 0.3% Previous: 0.0% https://www.dailyfx.com/economic-calendar#2019-11-15
  • 🇺🇸 USD Import Price Index ex Petroleum (MoM) (OCT), Actual: -0.1% Expected: -0.1% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2019-11-15
  • 🇺🇸 USD Retail Sales Control Group (OCT), Actual: 0.3% Expected: 0.3% Previous: 0.0% https://www.dailyfx.com/economic-calendar#2019-11-15
  • 🇺🇸 USD Export Price Index (YoY) (OCT), Actual: -2.2% Expected: N/A Previous: -1.6% https://www.dailyfx.com/economic-calendar#2019-11-15
  • 🇺🇸 USD Retail Sales Ex Auto and Gas (OCT), Actual: 0.1% Expected: 0.3% Previous: 0.0% https://www.dailyfx.com/economic-calendar#2019-11-15
  • 🇺🇸 USD Retail Sales Advance (MoM) (OCT), Actual: 0.3% Expected: 0.2% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2019-11-15
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.63%, while traders in France 40 are at opposite extremes with 82.75%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/OoCrENVmT0
  • Heads Up:🇺🇸 USD Retail Sales Control Group (OCT) due at 13:30 GMT (15min), Actual: N/A Expected: 0.3% Previous: 0.0% https://www.dailyfx.com/economic-calendar#2019-11-15
Loonie Surges on BoC- Dollar Softness Remains

Loonie Surges on BoC- Dollar Softness Remains

2011-05-31 14:55:00
Michael Boutros, Technical Strategist
Share:

Daily Winners and Losers

Loonie_Surges_on_BoC-_Dollar_Softness_Remains__body_Picture_2.png, Loonie Surges on BoC- Dollar Softness Remains Loonie_Surges_on_BoC-_Dollar_Softness_Remains__body_Picture_3.png, Loonie Surges on BoC- Dollar Softness Remains Loonie_Surges_on_BoC-_Dollar_Softness_Remains__body_Picture_4.png, Loonie Surges on BoC- Dollar Softness Remains

The Bank of Canada left interest rates unchanged at 1.00% this morning, citing that the growth in the domestic economy has largely been in line with expectations. The central bank maintained its wait-and-see approach, noting that there is still “material excess supply in the economy” and that some stimulus measures may be “eventually withdrawn.” The comments boosted interest rate expectations, with markets now factoring in 74 basis points in hikes for the next twelve months according to Credit Suisse overnight swaps. The Canadian dollar advanced against the greenback on the announcement, pressuring USD/CAD below the 76.4% Fibonacci extension taken from the May 17th and 25th crests at the 0.97-handle. The pair encountered resistance at the 100% Fib extension at 0.9660 before paring back some of the gains. Interim resistance is eyed at 0.9685 backed by 0.97-figure and 0.9720. Downside targets are held at 0.9660 with subsequent floors seen at 0.9650, 0.9640 and 0.9620.

Key Levels/Indicators

Level/Indicator

Level

50-Day SMA

0.9645

20-Day SMA

0.9695

10-Day SMA

0.9739

2011 High

1.0057

Loonie_Surges_on_BoC-_Dollar_Softness_Remains__body_Picture_5.png, Loonie Surges on BoC- Dollar Softness Remains Loonie_Surges_on_BoC-_Dollar_Softness_Remains__body_Picture_6.png, Loonie Surges on BoC- Dollar Softness Remains

The USD/JPY pair has seen a volatile 24 hours with the pair moving 151% of its average true range. The dollar surged against the yen in overnight trade before encountering resistance at the long-term 23.6% Fibonacci extension taken from the March 16th and May 5th troughs at 81.70. The pair sees interim support at 81.20, backed by 23.6% Fibonacci extension taken from the April 6th and May 19th crests at 80.80, and 80.50. A breach above 81.70 eyes targets at the 82-handle, followed closely by 82.20 and 82.60. Economic data out of Japan tomorrow sees expectations for a softer print on capital spending as the domestic economy struggles to gain some traction after the disasters that rocked the isle-nation back in March.

Key Levels/Indicators

Level/Indicator

Level

50-Day SMA

82.08

20-Day SMA

81.12

10-Day SMA

81.51

2011 High

85.51

Upcoming Events

Date

GMT

Importance

Release

Expected

Prior

6/1

23:50

MEDIUM

Capital Spending (1Q)

3.0%

3.8%

6/1

23:50

MEDIUM

Capital Spending ex Software (1Q)

-1.0%

4.8%

6/1

23:50

LOW

Monetary Base (YoY) (MAY)

-

23.9%

Written by Michael Boutros, Currency Analyst for DailyFX.com

To contact the author of this report, please send inquiries to:mboutros@dailyfx.com

You can also follow Michael on Twitter @MBForex

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

DISCLOSURES

News & Analysis at your fingertips.