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.

As with any central bank, when the Bank of Canada (BOC) changes interest rates, it can have a knock-on effect to stocks, indices and currencies. Find out everything you need to know about the BOC and how it’s decisions impact financial markets.

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 extended a bullish breakout this week while starting re-test of the 1.3500 psychological level. Bulls held the move despite US CPI coming in below expectations and CAD/JPY retains breakout potential given an ascending triangle formation. EUR/CAD on the other hand may offer some pullback potential given a hold at a key Fibonacci level of resistance.

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.

As the data was compiled ahead of the FOMC meeting its likely there are some distortions in this week’s speculative positioning report.

Canada’s annual inflation rate just rose to 4.8%, its highest level since 1991 - how will that impact USD/CAD?

A good sign of a strong currency is when you see several pairs amidst an inflection point. And that’s what we think we’re seeing across Canadian dollar pairs.

We expect the BOC to reiterate that the Canadian economy is on track for a full recovery next year, and that an interest rate hike cycle could begin as soon as H1...

Back in October, we highlighted the potential for yen pairs to correct from their overextended highs. We think those corrections are nearing an end.