USD/CAD Daily Price Forecast – USD/CAD on Sharp Upside Move As USD Rebounds

USD Regains strength ahead of American market hours as investor sentiment turned risk averse following Sino-U.S. trade deal related headlines and declining crude oil price in broad market.
Colin First
Canadian Dollars

The USDCAD pair yesterday saw sharp downside move as USD remained week owing to decline in US Treasury Yield for long term government bond while disappointing macro data outcome in the US also added more bearish pressure to US Greenback. Meanwhile, consecutive trading sessions of positive crude oil price hinted at positive fundamentals in the crude oil market. Canadian Loonie being a commodity-linked currency gains momentum when Crude oil price trades positive in the broad market. Given the lack of macro data updates in Canadian macro calendar, the strength of US greenback in the global market and crude oil price in global markets were the main driving force of price action for USDCAD pair.

Sino-U.S. Trade Deal Related Headlines Underpin USD Bulls

The USD Greenback rebound in the broad market and slowly gained strength across the day as US Treasury Yields spiked during Pacific-Asian market hours. Meanwhile, Crude oil price also hit new 2019 highs in Pacific-Asian trading session as supply disruption influenced by the sudden outage in Venezuela and Saudi Arabia’s target lower production and output than the agreed target provided fundamental support to crude oil. However, crude oil price fell later in the day as the influence unexpected increase in EIA weekly crude oil stockpile hit the market. Given sudden draw in API weekly data released earlier this week, the sudden increase in latest stockpile data has a significant impact on crude oil price action resulting in declines from intra-day highs.

Further, cautious mood increased in European market hours as news hit the market that China was planning on delaying face to face meeting between Presidents of both nations which was scheduled to occur later this month to April. Meanwhile, US President Donald Trump also commented in a manner which was in contrast to his speech last month hinting that there is no urgency to close trade deal immediately, while US trade representative Robert Lighthizer commented that key issues between both nations still need to be resolved which suggests that things may not have seen much progress and increased caution among global investors. This added more bearish pressure to the Canadian Dollar resulting in USDCAD pair seeing sharp upside move ahead of US market hours. On the release front, Canadian calendar will see the release of new housing price index data while the US calendar sees the release of new home sales data and import and export price index data updates. Given the cautious investor sentiment following Sino-U.S. trade talk headlines, USD bulls are expected to dominate price action for the rest of today’s trading session.

Please feel free to let us know what you think in the comments below. 

 

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US