Dukascopy - Analytics


    485.50 6.00/10
    83% of positive reviews

    USD/CAD anchored around 1.33

    © Dukascopy Bank SA
    "The decline in oil prices is deflationary, but the Canadian dollar's depreciation is inflationary. More pressing problem for Canada is growth. Retail sales will likely drag down by the decline in gasoline. Excluding autos and gasoline, Canadian retail sales are expected to have risen by 0.4%. We suspect the risk is on the downside." 
    - BBH (based on FXStreet)

    Pair's Outlook 
    The US Dollar inched higher against the Loonie on Friday, reaching a new six-week high. The USD/CAD is now stuck between the weekly PP, which is supporting the pair from below, and the monthly R1—the immediate resistance. Attempts to pierce the resistance were made, but the Buck was pushed back down towards the opening price, where it remains muted. Friday's rally failed to provide sufficient impetus for the USD to remain above the 1.33 major level, hence, the exchange rate keeps gravitating towards that area. We expect the USD/CAD to trade flat over the day, despite bullish signs.  

    Traders' Sentiment 
    Market sentiment weakened, as 64% of all positions are short (previously 54%), while the share of buy orders slid from 56 to 30%.
    © Dukascopy Bank SA

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