Canadian Dollar

Canadian Dollar is on the defensive for a second week with USD/CAD building on a rebound off support. Levels that matter on the weekly technical chart heading into May.

Canadian Dollar advance failed at support near the yearly range lows with USD/CAD attempting to mount a counteroffensive. The levels that matter on the technical charts.

Canadian Dollar surged this week with a reversal in USD/CAD plunging more than 2%. The levels that matter on the weekly technical chart heading into April.

In this week’s edition, we discuss the dollar and its impressive rally and the Canadian dollar.

The Bank of Canada will deliver its interest rate “decision” and monetary policy statement in tomorrow morning’s US session. According to futures markets, traders are not expecting any changes to monetary policy tomorrow and only a 16% chance of a rate hike by the BOC’s July meeting.

Despite US stock and bond markets closed in honor of President George H. W. Bush’s passing, we’ve seen a surprising amount of volatility in the FX market.

The number of the day (and indeed the last two weeks) is 10. As in, the price of a barrel of WTI crude oil is declining for the 10th straight day, the longest streak since 1984.

At FOREX.com, we try to avoid writing about the same currency pair two trading days in a row, but occasionally big new developments make it impossible to avoid.

What a difference a week makes!

With UK traders out on holiday and markets generally slow as traders try to soak up the last of the summer sun, today’s trade has been all about…well, trade.

Well, it’s official: The Trump administration has slapped a 25% tariff on 818 Chinese goods, with a total value of up to $50B.

Market action in the past week has been driven to a large extent by heightened concerns over US-China trade negotiations, an extended rise in crude oil prices, and surging bond yields that indicate persistently increasing interest rate expectations.

After a moderate pullback last week on soft US inflation readings, the US dollar has rebounded strongly this week to resume and extend its rising trend that has been in place for the past month.

USD/CAD fell sharply for a second day in a row on Thursday as a combination of factors helped to weigh on the US dollar while boosting the Canadian dollar. This USD/CAD drop has occurred immediately ahead of key Canadian jobs data for April to be released on Friday.

The US dollar took a hit to begin the week on Monday after US President Trump issued a tweet that decried rising US interest rates amid his assessment that Russia and China are actively devaluing their respective currencies.