CAD consolidates near month tops

16 March, 2018

The pair defies US politics-led renewed USD selling.  Trade tensions continue to weigh on the CAD. Today’s economic releases eyed for fresh impetus.

The USD/CAD pair was seen oscillating in a narrow trading range and consolidated overnight strong gains to 8-1/2 month tops. 

The pair has managed to hold with modest gains and seemed rather unaffected by the recent US political turmoil, which has led to some renewed US Dollar selling on Thursday.

Persistent worries over the US President Donald Trump’s protectionist stance, coupled with NAFTA uncertainty and the recent dovish comments by the BOC Governor Stephen Poloz continues to weigh on the Canadian Dollar and supported the pair’s recent upsurge. 

Meanwhile, a sideways move in crude oil prices did little to influence demand for the commodity-linked currency – Loonie, with trade tensions acting as an exclusive driver of the pair’s bullish momentum to the highest level since late June.

Today’s economic releases - housing market data, industrial production figures and Prelim UoM Consumer Sentiment from the US, along with the Canadian Manufacturing Sales data - would now be looked upon for some fresh impetus. 

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: “The pair looks set to test 1.3157 (rising channel resistance) - 1.3230 (bull flag resistance) in the next 5-6 weeks. A minor pullback to 1.29 cannot be ruled out in the short-run as suggested by the daily RSI. Only a close below 1.2803 (March 12 low) would signal bullish invalidation.”


Source   Presented by HYCM
Canadian dollar strengthened to a weekly high12 Feb, 2020  

The Canadian dollar strengthened to a one-week high against its American counterpart on Wednesday, as declining concern over the economic impact...

Loonie braces for Canadian jobs data10 Jan, 2020  

The latest employment figures out of Canada will be released at 13:30 GMT on Friday. Recent data have been disappointing, which puts extra...

CAD rises ahead of BoC rates decision4 Dec, 2019  

The Canadian dollar gained against the USD during the Asian session as the market waited for the BOC decision that will be made later today.


USD/CAD retreats from session highs,13 Aug, 2019  

US Dollar Index loses traction in the last hour. WTI clings to small daily gains near $55 handle. Coming up: Consumer Price Index (CPI) data...

USD/CAD rebounds from multi-month lows5 Jul, 2019  

A sharp pullback in Oil prices undermined Loonie and helped gain some positive traction. Fed rate cut bets kept the USD bulls on the defensive...

USD/CAD sticks to modest gains14 Jun, 2019  

A modest pull-back in Oil prices undermine Loonie and helped regain traction. The USD continues to attract some safe-haven flows and remained...


CAD boosted by jobs report10 Jun, 2019  

The Canadian dollar has continued to rally against its US counterpart, following on from Friday’s sold gains after a better than expected jobs report...

USD/CAD struggles to make a recovery6 Jun, 2019  

US Dollar Index stays calm above the 97 mark. WTI tries to retrace Wednesday's sharp drop. Coming up: Trade balance data...

CAD hitches a ride as crude prices surges23 Apr, 2019  

The Canadian dollar rose on the back of rising crude oil prices. WTI crude oil closed on Monday with 2.45% gains. This allowed the Canadian dollar...