Daily Market Comment – Sinking dollar lifts all FX boats

Posted on September 1, 2020 at 11:06 am GMT

Dollar breaks down across multiple charts, without a clear trigger Other major currencies climb alongside gold, Nasdaq hits new records Today: European inflation, US manufacturing, and Fed’s Brainard Dollar: The pain train rolls on There is no shortage of volatility in the FX arena. The world’s reserve currency continues to break down, in fear that the Fed’s new regime shift may succeed in driving inflation higher and diminish the greenback’s future purchasing power. The dollar index sunk to a fresh [..]


Technical Analysis – USDCAD communicates a commanding bearish bias

Posted on September 1, 2020 at 9:06 am GMT

USDCAD seems to be pursuing its proclaimed bearish direction, something also conveyed through the dominant negative bearing within the simple moving averages (SMAs). The short-term oscillators as well as the falling Ichimoku lines deliver a negative demeanour reinforcing this view. The MACD, some distance in the negative region, is decreasing below its red signal line, while the RSI is slipping further in oversold territory. Moreover, the stochastic oscillator has retreated back into the oversold zone, promoting further losses in the [..]


Week Ahead – US jobs report eyed for recovery progress; Calm and steady at the RBA

Posted on August 28, 2020 at 12:07 pm GMT

As a possible fiscal cliff looms in the United States, the August nonfarm payrolls report will be a crucial test for the strength of the economic recovery, making it the highlight of a relatively busier week as summer draws to an end. Canadian employment figures are also on the agenda, while the latest PMIs out of China will be important for market sentiment. But it is the Australian dollar that could see the most crossfire out of the major currencies [..]


Technical Analysis – USDCAD unlocks fresh 7-month low below 1.3100

Posted on August 28, 2020 at 7:10 am GMT

USDCAD has been posting more losses as it completed a fresh seven-month low of 1.3085 earlier today, remaining in a descending channel over the last five months. The momentum indicators are currently encouraging the sell-off as the MACD oscillator is developing beneath its trigger and zero lines, while the RSI is trying to meet the oversold territory. Both the Ichimocku indicators, the red Tenkan-sen and the blue Kijun-sen lines, and the 20- and 40-day simple moving averages (SMAs) are heading south [..]


Canada’s GDP to slump at a record rate, but loonie has other concerns – Forex News Preview

Posted on August 27, 2020 at 1:24 pm GMT

Canada is reporting GDP figures for the second quarter on Friday at 12:30 GMT and while the country is expected to reveal its worst contraction ever, the loonie may shrug off the data and lean on the dollar for direction. Movements in oil prices could be another market mover for the Canadian currency. Worst contraction ever In the first quarter of the year, the Canadian economy shrank by 8.2% q/q annualized thanks to domestic and global Covid-19 isolation measures, but [..]


Daily Market Comment – Dollar treads water as all eyes on Powell

Posted on August 27, 2020 at 8:37 am GMT

Markets steady as Powell’s highly anticipated Jackson Hole speech awaited Dollar braces for major dovish tilt by the Fed Aussie and kiwi lead the gainers; loonie seeks further oil boost How dovish can the Fed get? Fed chief Jerome Powell will take centre stage when he updates investors on the Fed’s policy framework review at the annual Jackson Hole conference of central bankers, which has gone virtual this year due to the ongoing pandemic. Powell will deliver his hotly anticipated [..]


Technical Analysis – USDCAD slows momentum in sideways channel

Posted on August 25, 2020 at 9:01 am GMT

USDCAD has been in a consolidation area over the last week with upper boundary the 1.3245 resistance and lower boundary the seven-month low of 1.3132, reached on August 19. The stochastic oscillator is flattening in the overbought zone and the RSI is ticking down in the positive region, suggesting more losses. The 40- and the 20-period simple moving averages (SMAs) in the 4-hour chart, are acting as strong support levels for the bears at 1.3197 and 1.3186 respectively, near the [..]


Daily Market Comment – Dollar eases, stocks hit record as US and China reaffirm trade truce

Posted on August 25, 2020 at 8:43 am GMT

US and China hold ‘constructive’ talks, trade deal seen intact Wall Street hits another record; global equities follow suit But dollar only mildly softer as Treasury yields pop higher Phase one trade deal safe for now Washington and Beijing have reaffirmed their commitment to the ‘phase one’ trade deal via a call late on Monday between US Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He. The talks, which were originally scheduled for August 15, [..]


Week Ahead – Markets to stay choppy ahead of virtual Jackson Hole symposium

Posted on August 21, 2020 at 12:49 pm GMT

The Federal Reserve will be front and centre next week as traders will be hoping policymakers will provide clearer signals on future monetary stimulus than they did in the FOMC minutes when they hold a virtual gathering of their annual economic symposium. Data out of the United States will constitute the predominant data releases, and coupling that with the Fed event, there can be little doubt the US dollar will be the primary driver of the FX market in an [..]


Daily Market Comment – Dollar gets a second wind after bleak Eurozone PMIs

Posted on August 21, 2020 at 8:49 am GMT

Vaccine news from Pfizer boost sentiment, more records for Nasdaq Dollar can’t find much love amid risk-taking mood But how long can the market ignore Europe’s second wave? Perhaps not long, as the Eurozone’s PMIs provide a reality check Dollar feels the ‘risk on’ blues There’s no love for the US dollar out there. The reserve currency remained on the back foot on Thursday, surrendering some of the gains it posted after the FOMC minutes played down the prospect of [..]

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