Canada’s CPI data for March came in at 0.6% on the month and 1.5% on the year. The forecast around 0.4% for the monthly rate, and 1.4% for the annual rate. Although not at the 2.0% target, the inflation rate in the past 3 months (Jan: 0.3%, Feb: 0.8%, Mar. 0.6%), eases any deflationary risk concerns. The annual rate also rebounded from the 1.1% in February, so it was a good sign that inflation stabilized and is working back towards the 2.0% target…

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The Canadian dollar touched its lowest point in over a week after the Bank of Canada maintained a neutral bias on interest rates and said a forecast pickup in business investment has been slow to materialize. The currency fell against most of its major peers as the central bank held its benchmark interest rate at […]

The post CAD Lower As Central Bank Maintains Neutral Bias appeared first on MarketPulse.

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Real GDP in Canada grew 0.5% in January, rebounding from a 0.5% decline in December. Before that, there were 5 consecutive months of growth. In January, Manufacturing activity was the main contributing factor to the growth, while “agriculture and forestry” was the main drag. (Source: Statcan) The persistent growth since 2009 is a welcoming trend  for the Canadian economy, and also a factor that should allow the BoC to end its loose monetary policy sooner. This should be CAD-positive, and the market is so far reacting that way. USD/CAD Falls: USD/CAD for example returned to last week’s low of 1.10. This price action threatens to extend an already sharp decline from the March and 2014 high of 1.1277.  A break below 1.10 opens up 1.0955 and 1.0910 lows in the short-term. A break below 1.0910 would open a bearish market in the medium term, reversing the prevailing bullish outlook that has been developing since Sept. 2012. (USD/CAD 4H 3/31) Bullish scenario: If the market holds 1.10 and pushes USD/CAD above the 1.1077 pivot, we can look for a near-term bullish outlook toward the 1.1150 pivot, or 1.1171, 61.8% retracement. This scenario would also maintain the prevailing bullish outlook, the one that has been developing since Sept. 2012. CAD/JPY Extends: Another theme today has been risk appetite, and therefore a weak JPY across the board. CAD/JPY therefore has double the fuel to extend its already bullish swing. When you look at the 4H chart, you see a market in consolidation since the beginning of February. This consolidation followed a sharp bearish swing that started on Jan. 1 2014 from 99.15 to 90.65 by Feb. 3. (CAD/JPY 4H chart 3/31) Price is attacking the consolidation resistance area. A break above 94.10 would essentially complete a double bottom, and suggest an attempt to revisit the 2014 high around 99.15. With the 4H chart showing overbought condition, we should anticipate some near-term resistance around 94, or some pullback if 94.10 is broken by the current swing.   Fan Yang, CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes. Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.

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USD/CAD has edged lower on Wednesday, as the pair trades in the mid-1.04 range. The pair has shrugged off a host of US key releases on Wednesday, which were mixed. Later today, we’ll get a look at the minutes of the Federal Reserve’s most recent policy meeting. Amid all the US releases, there was one Canadian release […]

The post USD/CAD – Loonie Edges Higher After Mixed US Numbers appeared first on MarketPulse.

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USD/CAD has moved slightly higher on Tuesday, as the pair continues to trade in the mid-1.04 range. In economic news, Tuesday has a light schedule, with just one data release out of the US. Today’s highlights include speeches by US Treasury Jack Lew and two FOMC members. There are no releases out of Canada on Tuesday. On Wednesday, the Federal Reserve will […]

The post USD/CAD – Edges Higher As Markets Eye Federal Reserve Minutes appeared first on MarketPulse.

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Key Fundamental Forex Events for the Week of July 15th through July 19th

The following table lists the key economic data and other events that came out during the week of July 15th through July 19th, with release times displayed for the GMT time zone.

The list also indicates how much each release deviated from the market consensus forecast upon release, as well as what the affected major currency pair or pairs did after each event or set of events.

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