Don’t waste your time – keep track of how NFP affects the US dollar!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
Warning! Old version of the browser!
Press one of the icons below to proceed to the official website of the developer and download the latest version of your browser.
Online Forex broker
Information is not investment advice
USD/CAD reached levels unseen since the beginning of the year. ING considers the pair may fall further, but Bank of America warned that it may hit its bottom and reverse in the long run.
As you may know, the Canadian dollar is positively correlated with oil prices. When the oil market is on the rise, the loonie is in high demand, too. Yesterday, WTI oil’s price surged to the levels unseen since early March. According to Bloomberg, the hurricane in Mexico forced oil refineries to shut down and stop oil production. In addition, ING points to Russian oil cuts to the lowest levels in almost ten years. The leap of oil prices should push the CAD upper. Watch out today’s report of US crude oil inventories at 17:30 MT time! They may have an impact on the oil market.
Bank of America is confident that the recent euphoria about the global recovery soon is gone, and investors have become more realistic. They weigh more on possible risks and slower economic rebound. They forecast that USD/CAD may return to 1.3700 during this quarter and to 1.400 at the end of the year.
Unlike Bank of America, ING is quite confident that the pair will keep declining and may reach the area of 1.2500-1.2600 in the first half of 2021. Besides, they emphasize that the Canadian dollar has been performing worse than other currencies of G10. It has happened because of the close dependence from the US economy. Investors were worried about that amid the second virus wave. However now, when the infections curve is declining, those doubts are waning. Therefore, the Canadian dollar has all chances to catch up the lost ground.
USD/CAD has been trading in the descending channel since late June. ING believes there is more room for a further fall of the loonie. Bank of America allows that the consolidation may continue until the pair reaches the strong support of 1.3000, which should be the point of reverse.
If the price breaks down the support of the low of January 23 at 1.3120, it will fall deeper to the next support of 1.3045. Otherwise, the move above the recent high of 1.3215 will drive the price to the next resistance of 1.3300.
Despite the negative news and worrying headlines, we recommend traders to make mental reframing of the situation. This way, you can look at the market from a different perspective. Let’s observe how you can take advantage of the uncertainties and make the fundamentals work for you!
The US Federal Reserve may refrain from more aggressive interest rate hikes in March due to geopolitical risks after Russia's special operation in Ukraine…
Hello from the far 2022! FBS analysts have used some magic to travel to the future and brought you some hilarious predictions.
Great Britain released retail sales data on May 20, 9:00 GMT+3. The reading outperformed expectations greatly (+1.4% actual vs. -0.3% forecast).
The stock market has reversed, and now it’s going lower and lower…
Walmart is one of the biggest retail corporations in the US, with $244 billion in total assets. Does it worth buying amid rising prices and supply concerns that shatter the world economy?
Your request is accepted.
We will call you at the time interval that you chose
Next callback request for this phone number will be available in 00:30:00
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
