|Day's Range||0.783 - 0.785|
|52 Week Range||0.7251 - 0.8290|
The US dollar fell as low as the 1.25 region during the week but bounced enough to show signs of life. On Friday, we guide a very negative outcome when it comes to the CPI numbers coming out of Canada, so this only exacerbated the upward momentum.
The US dollar has initially pulled back during the trading session on Friday, reaching down towards the 1.2625 level, but finding enough bullish pressure turn around and go much higher, reaching towards the vital 1.2750 level.
The US dollar pulls back a bit during the Thursday session initially, but also turns around find a bit of support at the 1.26 region. I think at this point it comes down to oil, and what it does next. The oil markets have been very bullish, so that would perhaps pray tell a move lower in this pair, but it looks like were trying to see some type of fight.
The US dollar initially tried to rally against the Canadian dollar during the session on Wednesday but found the 1.26 level to be a bit too resistive.
The US dollar went sideways against the Canadian dollar during trading on Tuesday, as it looks for clarity. I still think that we have more selling pressure than buying pressure, but we may need to build up some type of momentum.
By Fergal Smith TORONTO (Reuters) - The Canadian dollar is on course to strengthen in April for the eighth time in the last 10 years, a sequence strategists link to seasonal vitality in stocks and energy products, rewarding investors who trade on market patterns. The potential to predict repetitive returns appears to contradict the well-known hypothesis of financial market efficiency. "It is playing out really well again this year," said Amo Sahota, director at Klarity FX in San Francisco.
This week should be important for the CAD. We do have an interest rate decision, statement, the CPI, and the Retail Sales data. Ahead of those events, CAD is very strong. USDCAD is going down for the past few weeks and it looks like this movement will continue. Currently, the price is creating the rectangle pattern, which promotes a breakout of its lower line and a further drop.
A dovish RBA and weak economic data out of China weighed through the Asian session, with the day ahead a busy one on the economic calendar, bringing the Pound, the EUR and the Dollar into focus.
During the Monday session, the US dollar did very little against the Canadian dollar, as we continue to go sideways in general. The last couple of sessions have all been reasonably quiet and range bound, and I think that is the market trying to decide whether the 1.26 level will offer enough interest for the market to bounce.
The US dollar tried to rally initially against the Canadian dollar during the week but found the area above the 1.2750 level to be far too resistive to continue going higher. We broke down a bit, and it now looks as if we are going to test the 1.25 level, and perhaps an uptrend line that sits just below.
The US dollar dipped initially during trading on Friday but found enough support near the 1.2550 level to bounce and cause a bit of a supportive looking base against the Loonie. However, there are a lot of things to worry about going forward.
The US dollar continues to chop around the 1.26 level during trading on Thursday, as the market is trying to figure out which way to go next. By showing this volatility in this area, I think we are trying to “catch our collective breath” after the drop.
The US dollar fell against the Canadian dollar again during Wednesday trading, breaking down through another minor support level in the form of the 1.26 level. It now looks as if we are destined to continue to go lower, especially if the oil can continue to rally due to the “risk on” attitude traders suddenly have.
Even a hawkish set of FOMC meeting minutes and a jump in baseline inflation failed to spur the Dollar into action, with geopolitical tension on the rise as Trump looks set to launch missiles on Syria.
The US dollar has broken down significantly during trading on Tuesday, as the markets have entered a “risk on” move. I think that at this point it’s likely that we will continue to see a lot of bearish pressure, and it certainly has changed the attitude of traders of the last couple of days.
Yahoo Finance's Jared Blikre joins Seana Smith from the floor of the New York Stock Exchange to discuss a Goldman Sachs analyst note, which notes negative seasonality for equities in midterm election years heading into the election.