EUR/USD 1.16278
0.039%
Gold 4372.55
0.396%
Oil 92.046
-0.174%
USD/JPY 153.686
-0.191%
GBP/USD 1.35414
0.011%
GBP/JPY 208.117
-0.187%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Iranian Revolutionary Guard: In addition, 10 vessels that violated regulations by attempting to cross the no-navigation zone and danger zone of the Strait of Hormuz, instigated and supported by the US military, were also targeted.The Indonesian rupiah appreciated to 17,560 against the US dollar, its highest level since mid-May.On September 9th, the White House released a statement regarding its tariff actions against Canada. The statement indicated that, in response to escalating commercial discrimination against the United States by Canada, President Trump signed five proclamations under Section 338 of the Tariff Act of 1930, imposing import bans on certain Canadian products and adjusting previous tariff measures. Given Canadas continued discriminatory practices in the alcohol and dairy sectors, the U.S. has taken targeted measures: (Proclamation 11046) prohibiting the import of Canadian alcohol and other products subject to the 50% tariff under Section 338; (Proclamation 11047) prohibiting the import of Canadian dairy products and other products subject to the 50% tariff under Section 338. Simultaneously, to alleviate the burden on U.S. businesses and consider public interest, the U.S. has adjusted the measures implemented on July 20th, including removing some products (such as rock salt and cement) and adding new products (such as all-terrain vehicles and more dairy products). The aforementioned Section 338 tariffs apply to all regulated goods, regardless of their status as goods eligible for origin under the United States-Mexico-Canada Agreement (USMCA), and are levied in conjunction with Section 232 tariffs. The import ban will take effect on September 29, 2026, and the product adjustments will take effect on September 15.The White House issued a statement regarding Canadas tariff actions.September 9th - In August, Beijing and Shanghai successively optimized their housing market policies. According to statistics from the China Index Academy, Beijings existing home sales reached 14,000 units in August, a year-on-year increase of 3.9%; Shanghais existing home sales remained high, with a year-on-year increase of 16.3%; regarding new homes, Beijings new home sales area in August was basically flat compared to the same period last year, while Shanghais increased by 16.0% year-on-year. Cao Jingjing, General Manager of the Index Research Department of the China Index Academy, believes that the Beijing and Shanghai housing markets are more reflecting a recovery driven by active transactions and marginal improvements in supply and demand. Prices are still in an adjustment phase, and new home inventory remains relatively high. The sustainability of the market recovery remains to be seen.

USD/CAD Trades at a Flat Level Following Volatile Trading and Rising US Treasury Yields

Drake Hampton

Apr 06, 2022 10:16

Insights

  • The dollar fell as additional penalties against Russia weighed on the Loonie.

  • Benchmark rates increased as the Federal Reserve pursued a more aggressive rate hike strategy.

  • Due to the new penalties, gold and silver prices remained rather stable.

  • As European countries ponder further measures, oil prices continue to rise.

 

Despite a volatile trading session, the dollar maintained its strength as higher oil prices bolstered the commodity-linked Loonie. The yield on ten-year government bonds increased to 2.56 percent, the highest level since May 2019. Benchmark rates increased several basis points following Fed Governor Brainard's statement that the Fed must pursue a more aggressive stance to contain inflation. Commodity-linked currencies such as the Loonie increased in value as a result of higher oil prices and good economic indicators. New sanctions against Russia continue to benefit silver and gold prices. On the potential of fresh Russian sanctions, oil prices continued to increase. Investors are awaiting the release of the minutes from the most recent FMOC meeting on Wednesday.

 

Today, the US released its February trade balance. Actual balance of -$89.2 billion was lower than predicted at -$88.5 billion. The reading stayed relatively stable compared to the previous month, indicating a record deficiency. Exports increased by 1.8%, while imports jumped by 1.3 percent. In the following months, the Russia-Ukraine war may limit demand for US exports.

Technical Evaluation

The USD/CAD exchange rate remained unchanged following a recovery from the downward pressure caused by increased oil prices, which supported the Loonie. However, losses should be contained as a result of the Fed's more aggressive rate hikes. The pair remains below the key level of 1.25 and may be driven lower as additional penalties against Russia increase. Resistance is located near the 10-day moving average, which is now at 1.25. Near today's lows near 1.24, support is seen. A break below support would reveal the daily low of 1.2387 from November 10th, signaling further downward pressure. The short-term momentum shifted to the upside when the fast stochastic crossed above the buy signal.

 

Although the MACD line generated a crossover sell signal, the medium-term momentum is negative but favorable. When the MACD line (the 12-day moving average minus the 26-day moving average) passes the MACD signal line, this scenario occurs (the 9-day moving average of the MACD line).

 

image.png 

Suggestion