Forex Investment and Currency Trading

The CAD has regained a little ground this morning as risk appetite improves. Oil prices have recovered a little to add to the CAD underpinning but after the recent shake out in equities and with some event risk ahead still – beyond today’s US GDP data, the FOMC meeting next week looms very large – scope for a CAD bounce may be limited at the moment, even if traders also think that the CAD sell off has been overdone after the constant stream of comment from BoC Governor Carney over the past few days. The rebound in the USD has taken [...]

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The soft close in US equities set the scene for a cautious Asian session with regional bourses tumbling across the board (Nikkei -1.83%, HSI -2.28%) and JPY outperforming. However, risk aversion soon evaporated as Europe and London entered the fray with a more upbeat tone and US stock futures began to rally, while government bonds became offered, and commodity driven currencies outperformed across the board (AUD, NOK, NZD).
In terms of data, today’s advance release of US Q3 GDP may well be crucial in setting the general tone heading into month end.
USD/CAD drifted lower overnight. Oil consolidated yesterday’s losses as it [...]

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USD/CAD – While price action Tuesday suggested that the USD rebound may be slowing, the CAD failed to pick up any substantial support at all over the past 24 hours and the USD continues to look bid. Liquidation of long CAD positions and covering of USD shorts gave USD/CAD the initial leg up last week and now the market seems to be moving into outright USD bull trades with the market through some important resistance points. A daily close above the 55-day moving average (1.0755) will give the USD further impetus for a full retracement of the 1.09/1.02 drop in [...]

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USD/CAD
After yesterday’s broader market shake-out, it feels a bit like a back-to-the-drawing-board day. Price action was certainly hinting at the risk of a squeeze higher in USD generally Monday. With little on the domestic agenda today – apart from more commentary from Mr Carney and Mr Flaherty during their parliamentary testimony this afternoon (and really, what more can he possibly say on the CAD at this stage?) – the CAD will still be driven by short term flows and risk appetite. Asian equities slipped, Europe is mainly positive and US equity futures are, so far, showing little inclination to do [...]

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