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Forex Trading, Market News & Technical Analysis

Today’s Trading Edge: USD/CAD loonie rallies as stronger retail sales raise expectations for a July hike

Posted by WorldWideMarkets . on Jun 22, 2017 6:17:02 PM

On Thursday, Statistics Canada showed retail sales beat the analyst forecast of 0.3% and rose 0.8% to $48.6 billion in April. Sales were up in 9 of 11 subsectors, representing 71% of total retail trade. Excluding sales at motor vehicle and parts dealers, retail sales climbed 1.5%.

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Topics: Bank of Canada, USDCAD

Today’s Trading Edge: USD/CAD loonie rallies after BOC keeps rates steady and takes on optimistic tone

Posted by WorldWideMarkets . on May 24, 2017 6:32:40 PM

The Bank of Canada kept interests rates unchanged at 0.50% and highlighted that both growth and inflation are subdued.  The loonie rallied as investors focused on the comment that the Canadian economy’s adjustment to lower oil prices is largely complete and recent economic data have been encouraging, including indicators of business investment.  They also noted that consumer spending and the housing sector continue to be robust on the back of an improving labour market, and these are becoming more broadly based across regions.

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Topics: Bank of Canada, USDCAD

Today’s Trading Edge: USD/CAD loonie weakness returns after BOC maintains a dovish bias

Posted by WorldWideMarkets . on Mar 1, 2017 7:41:45 PM

The Bank of Canada kept interests rates unchanged at 0.50% and highlighted subdued growth in wages and hours worked continue to reflect persistent economic slack in Canada, in contrast to the United States. The BoC also noted recent data on the global and Canadian economies have been consistent with the Bank’s projection of improving growth, as set out in the January Monetary Policy Report (MPR). In Canada, recent consumption and housing indicators suggest growth in the fourth quarter of 2016 may have been slightly stronger than expected. However, exports continue to face the ongoing competitiveness challenges described in the January MPR.

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Topics: Bank of Canada, USDCAD, Dollar-Cad, Cad

Today’s Trading Edge: USD/CAD loonie weakness returns after BOC keeps policy steady and dovish press conference

Posted by WorldWideMarkets . on Jan 18, 2017 7:22:33 PM

 

The Bank of Canada kept interests rates unchanged at 0.50% and adjusted their quarterly monetary policy report.  GDP forecasts for 2017 were raised from 2.0% to 2.1%, and 2018 was maintained at 2.1%.  Measures of core inflation are below 2%, reflecting material excess capacity in the economy. As consumer energy prices rise and the impact of lower food prices dissipates, inflation is expected to move close to the 2% target in the months ahead and remain there throughout the projection horizon while excess capacity is being absorbed.

During the post rate decision press conference, Governor Poloz noted the Governing Council is particularly concerned about new US trade policy.  He also noted that a rate cut remains an option if downside risks prevail, a change from the neutral stance held at last month's meeting.

Both the loonie and Mexican peso saw weakness after Wilbur Ross, the commerce secretary nominee, noted that the North American Free Trade Agreement with Canada and Mexico would be an early priority for his department.

Price action on the USD/CAD daily chart shows that the overall move from BOC decision and press conference was bearish for the loonie after noting concerns regarding trade negotiations with the US and the possibility of more easing. Price continues to respect the psychological 1.30 handle and appears to be finding tentative resistance from the 100-day SMA, which currently trades at the 1.3277.  If the bullish stance resumes, key resistance will come from the 1.3350 to 1.3400 zone.  If we see the bullish rebound stall, major support remains the noted 1.300 handle. 

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Topics: Loonie, Bank of Canada, USDCAD

Today’s Trading Edge: USD/CAD volatility returns after BOC keeps policy steady and a dovish press conference

Posted by WorldWideMarkets . on Oct 19, 2016 6:21:36 PM

The Bank of Canada kept interests rates unchanged at 0.50% and cut their quarterly monetary policy report.  GDP forecasts for 2016 were cut from 1.3% to 1.1%, and 2017 was reduced from 2.2% to 2.0%.  The Bank expects total CPI inflation to be close to 2% from early 2017 onwards, when these temporary factors will have dissipated, but downward pressure on inflation will continue while economic slack persists.

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Topics: Bank of Canada, USDCAD, Dollar-Cad, Cad

 

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