US Open Note – Dollar pauses its rally after NFP; oil still up

Posted on February 5, 2021 at 2:05 pm GMT

Dollar steady after NFP report The US dollar lost some ground after the publication of the non-farm payrolls report but is still steady today around 105.50 against the yen, as there’s a good argument that the numbers make a big stimulus package more likely. The US dollar index is moving lower, while US stocks are recording new highs. The US economy added 49K jobs in January, compared to market expectations of a 50K rise and -227K previously, while the unemployment rate declined to 6.3% from 6.7% in the preceding month. US President Joe [..]


Daily Market Comment – Vaccine-led rally back on, dollar stands tall

Posted on February 5, 2021 at 10:11 am GMT

Rising hopes that vaccinations will soon bring an end to lockdowns fuel global equities Dollar eases slightly but USD bulls may have already reawakened; NFP eyed Pound jumps after BoE says negative rates not imminent, euro steadies Stocks gripped by normalization hopes Progress in the global vaccination campaign and expectations of more easy money are powering world stock markets to fresh highs on hopes that a return to normality is nearing. A significant drop in new Covid infections in most [..]


Technical Analysis – USDCAD’s advances capped by Ichimoku cloud

Posted on February 5, 2021 at 9:35 am GMT

USDCAD is somewhat consolidating around the 50-day simple moving average (SMA) at 1.2776, as the pair’s efforts to improve are being curbed by the Ichimoku cloud. The Ichimoku lines are reflecting the price’s struggle to gain ground and it appears its bearish demeanour may be bulletproofed by the downward sloping SMAs. Positive momentum in the short-term oscillators seems to be faltering, increasing odds to the downside. The MACD, marginally above its red trigger line has barely peeped above the zero [..]


Canadian jobs data may not dampen spirits – Forex News Preview

Posted on February 4, 2021 at 11:28 am GMT

The loonie may not be brought to tears when Canada releases its first employment report of the year on Friday at 12:30 GMT, as weaker figures are inevitable given the tight lockdown restrictions during the month of January. The data, however, will still be worthy to watch since the Bank of Canada (BoC) left two conflicting scenarios open during its previous policy meeting, and investors would like to gather fresh clues before they make assumptions about the next policy announcement. Dovish [..]


Daily Market Comment – Dollar, stocks rise in tandem as Democrats push ahead with stimulus

Posted on February 3, 2021 at 10:05 am GMT

Democrats move to fast-track Biden’s stimulus package through Congress Wall Street surges for second day on earnings beats, brighter outlook US yield curve steepens, lifting the greenback; euro gets left behind Stimulus and vaccine hopes buoy markets Optimism about a stronger economic outlook and an ebb in the pandemic continued to gather pace on Wednesday, erasing last week’s jitters that sent stocks plunging and the dollar soaring. Equities have since made a powerful comeback, but the US currency has only [..]


Daily Market Comment – Dollar holds firm after gains as stimulus eyed; Reddit frenzy eases

Posted on February 2, 2021 at 10:06 am GMT

Dollar approaches 2-month top as stimulus hopes push up yields, euro falters Stocks rise again as Wall Street rebounds, retail craze cools, silver plunges Aussie bounces back, shrugs off surprise QE boost by RBA A dollar comeback? The US dollar appears to be on the rise again, mirroring a similar upward drive in 10-year Treasury yields in recent days. Expectations that the United States is moving closer to another big stimulus package lifted the greenback to near 2-month highs against [..]


Week Ahead – NFP bounce, stimulus progress might calm markets; BoE and RBA eyed

Posted on January 29, 2021 at 1:41 pm GMT

It’s going to be a relatively busy start to February as investors will be hoping the latest US jobs report will confirm that December’s rough patch was short lived. However, that won’t be the only data to test the market mood as preliminary GDP numbers out of the Eurozone could heighten fears of a double-dip recession. In the world of central banks, the first policy decisions of the year are due in Australia and Britain. The Reserve Bank of Australia [..]


Technical Analysis – USDCAD ticks higher near falling trend line

Posted on January 29, 2021 at 8:08 am GMT

USDCAD is gaining some ground for the third consecutive day above the 20- and 40-day simple moving averages (SMAs), rebounding off the 33-month trough of 1.2585. The pair is flirting with the long-term falling trend line around the 1.2900 psychological level. According to the technical indicators, the stochastic is suggesting an overbought market as the %K line advanced above the 80 level, while the RSI is pointing upwards above the 50 level with stronger momentum than begore. The short-term moving [..]


Dollar remains overvalued; can America’s twin deficits still sink it? – Special Report

Posted on January 28, 2021 at 2:28 pm GMT

The US dollar ended a volatile 2020 down 6.5% against a basket of currencies, underlining the dramatic turnaround in risk appetite from the depths of the March virus crisis. That risk rally is showing no sign of abating anytime soon, driving bearish bets against the dollar to near-decade highs. Nevertheless, the dollar’s negative outlook is becoming increasingly murky as the US economy is poised to outperform its peers in 2021. In view of this, can America’s soaring current account and [..]


Technical Analysis – USDCAD retreats towards descending channel

Posted on January 26, 2021 at 10:16 am GMT

USDCAD climbed above the short-term descending channel earlier today in the four-hour chart but failed to jump above the 1.2780 resistance, returning lower. The directionless Ichimoku lines and the steadied cloud further reflect the weakness in the price momentum. Meanwhile, the RSI is heading south but is still holding comfortably above its neutral threshold of 50, whereas the Stochastic is moving higher after the bullish cross within its %K and %D lines, endorsing the rebound off 1.2590. Initial support to downside movements could commence within the zone of the cloud, where the 40- [..]

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