USD/CAD Forecast and News
USD/CAD trades below 1.3600, nine-day EMA as bearish bias prevails
USD/CAD extends its losses for the second successive day, trading around 1.3590 during the early European hours. However, the technical analysis of the daily chart indicates the pair is positioned within the descending channel pattern, signaling an ongoing bearish bias.
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EUR/USD holds firm above 1.1750 as risk flows dominate
EUR/USD stays firm above 1.1760 in European trading hours on Wednesday, bolstered by improved risk sentiment, which dents the US Dollar's safe-haven appeal. Confidence returned on headlines indicating the United States and Iran are moving towards a deal to end the conflict. The deal would involve both sides lifting restrictions on transit through the Strait of Hormuz.
USD/JPY off lows, still down 1% on likely 'Yentervention'
USD/JPY is off ten-week lows but remains heavy near 156.00 in early Europe on Wednesday. Markets speculate another round of FX intervention by Japan's authorities behind the latest leg up in the Japanese Yen, keeping the bearish pressure intact on the currency pair.
Gold continues scaling higher; retakes $4,700 amid peace deal hopes
Gold extends its intraday ascent and climbs to an over one-week high, re-attempting $4,700 in Wednesday's European session. The US Dollar weakens across the board amid optimism over a potential US-Iran peace deal, helping the commodity to build on its recovery from a more than one-month trough, around the $4,500 mark set on Monday.
ADP Employment Report set to show US job market gained momentum in April
Developments in the Middle East conflict are likely to remain at the forefront this week, but investors will also keep an eye on a string of US labour market figures.
UK 30-year gilts hit 5.78%, the highest since 1998: what is being priced in? Premium
UK 30-year gilts traded as high as 5.78% on Tuesday, the highest level since 1998, while 10-year yields topped 5.10% with markets pricing in nearly three-quarter-point Bank of England (BoE) rate hikes this year.
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INFLUENTIAL ORGANIZATIONS AND PEOPLE FOR THE USD/CAD
Bank of Canada (BoC)
The Bank of Canada (BoC) is the nation's central bank. Its principal role, as defined in the Bank of Canada Act, is "to promote the economic and financial welfare of Canada." The bank's responsibilities are divided into four main areas:
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Monetary policy: The bank influences the supply of money in the economy, using its monetary policy framework to keep low and stable inflation.
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Financial system: The bank promotes safe, sound, and efficient financial systems within Canada and internationally, conducting transactions in financial markets to support these objectives.
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Currency: The bank designs, issues, and distributes Canada's banknotes.
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Funds management: The bank is the fiscal agent for the Government of Canada, managing its public debt programs and foreign exchange reserves.
The Bank of Canada (BoC) sets interest rates and manages monetary policy at eight scheduled meetings a year and ad hoc emergency meetings that are held as required. The BoC's primary mandate is to maintain price stability, which means keeping inflation at between 1-3%. Its main tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Canadian Dollar (CAD) and vice versa. Other tools used include quantitative easing and tightening.
The official website, on X and YouTubeThe Federal Reserve (Fed)
The Federal Reserve (Fed) is the central bank of the United States (US) and it has two main targets: to maintain the unemployment rate at its lowest possible levels and to keep inflation around 2%. The Federal Reserve System's structure is composed of the presidentially appointed Board of Governors and the partially appointed Federal Open Market Committee (FOMC). The FOMC organizes eight scheduled meetings in a year to review economic and financial conditions. It also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. The FOMC Minutes, which are released by the Board of Governors of the Federal Reserve weeks after the latest meeting, are a guide to the future US interest-rate policy.
Fed official website, on X and FacebookJerome Powell
Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018, for a four-year term ending in February 2022. He was sworn in on May 23, 2022, for a second term as Chairman ending May 15, 2026. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979. Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. He also worked as a lawyer and investment banker in New York City. From 1997 through 2005, Powell was a partner at The Carlyle Group.
Jerome Powell Fed's Profile and
Wikipedia
Tiff Macklem
Tiff Macklem was born in Montreal, Quebec, in 1961. He was appointed Governor of the Bank of Canada effective June 3, 2020, for a seven-year term. He graduated from Queen's University with a bachelor's degree in economics and completed a master's degree and a PhD in economics, both from the University of Western Ontario.
Before becoming Governor, Macklem served as a director of the Bank of Nova Scotia and chair of its risk committee. He is chair of the Group of Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, and co-chair of the Financial Stability Board's Regional Consultative Group for the Americas.
Macklem's BOC's profile and Wikipedia
BOC NEWS & ANALYSIS
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About USD/CAD
THE IMPORTANCE OF OIL FOR THE ‘LOONIE’
The USD/CAD is one of the three "commodity pairs", alongside AUD/USD and NZD/USD. These pairs are closely tied to commodity price fluctuations, particularly Oil.
Canada, known as a resource-based economy, is a major producer and supplier of Oil. Its leading export market is the United States, making the Canadian dollar (CAD) particularly sensitive to US consumption data and economic health.
Rising Oil prices typically have a negative effect on the USD and a positive effect on the CAD.
ASSETS THAT INFLUENCE USD/CAD THE MOST
- Commodities: As previously mentioned, Oil is the primary focus, but traders should also consider Gold and Natural Gas.
- Currencies: The Japanese Yen (JPY) and the Euro (EUR). Another important group of influent pairs includes: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF and NZD/USD.
- Bonds: CSB (Canada Savings Bonds), CPB (Canada Premium Bonds) and T-Note 10Y (10-year US Treasury note).