CAD

The 50 bp cut from the Bank of Canada was well priced-in ahead of this morning’s announcement, and several longer-term resistance levels sit overhead around 1.3900, 1.3950 and 1.4000.

Large speculators flipped to net-short exposure to EUR/USD ahead of the French election. Open interest on CAD futures fell at its fastest pace in nearly one year as the sentiment extreme we warned of plays out. Net-long exposure to AUD/USD futures fell to a 3-year low, and prospects of net-long exposure are now on the horizon with the potential for an RBA hike.

Today's BOC rate decision and an ISM report for the US places USD/CAD on volatility alert, alongside USD/JPY.

Asset managers reached a record level of net-short exposure to VIX futures, days before prices fell to a record low. Traders also remain net-long USD despite losses in recent weeks.

WTI crude oil has broken out of both a bull flag and an ascending triangle formation, but as oil strengthens the Canadian Dollar has been falling.

USD/CAD set a fresh yearly high on the first day of November, and the picture is quite a bit different today as that breakout has, so far, failed.

USD/CAD has been one of the stronger major pairs during the recent theme of US Dollar strength and after setting another fresh two-month-high this morning, the pair appears to be setting the stage for a pullback. Bulls have fiercely defended 1.3500 since the break – can they continue to hold the big figure?

The US Dollar has been in a strong bullish move over the past month but that’s been expressed well in USD/CAD, where USD strength has been matched with CAD weakness. USD/CAD tested a fresh two-month-high this morning while testing above a key psychological level at 1.3500. Can bulls hold the trend with higher low support at prior resistance?

USD/CAD is showing bullish breakout potential ahead of a busy economic calendar with the Bank of Canada on the calendar for tomorrow.

The just-released Consumer Price Index (CPI) in Canada rose 5.9% year-over-year in January...what does that mean for USD/CAD?

The bank's latest forecast shows the annual rate of inflation slowing to around 3% by the middle of 2023, and reaching 2.5% by the fourth quarter.

Market pricing and the consensus among economists firmly points towards a 25bp hike from the BOC tomorrow.

A fiat currency is any monetary instrument backed by a national government. Learn how fiat currencies operate and how they compare to other types of money.

Traders are still digesting last week’s US jobs report, but one thing is clear: The US labor market is outperforming Canada’s...

Fundamental trends show no imminent signs of reversing, but CAD/JPY’s chart nonetheless suggests that there may be an opportunity for one or both of these currencies to reverse some of this year’s moves.

Friday’s Canadian jobs report will be worth watching - see why!

USDCAD battles hawkish Fed & higher oil prices. Gold could come under pressure as Fed Powell talks hikes.