The USD/CAD pair extended its retracement slide from three-week tops and weakened further below the 1.3200 mark during the early North American session. The pair witnessed an intraday pullback from the 1.3260 area on the back of a strong rebound in crude oil prices, which tend to undermine the commodity-linked currency – the loonie. Adding to this, the emergence of some fresh selling around the USD exerted some additional downward pressure on the USD/CAD pair. The pair eroded a part of the previous day's strong positive move and remained depressed after the Bank of Canada, as was widely expected, left interest rates unchanged at 0.25%. The bank also continued with its quantitative easing (QE) program, with large-scale asset purchases of at least $5 billion per week of Government of Canada bonds. Meanwhile, language on the forward guidance was entirely unchanged and hence, did little to provide any meaningful impetus to the USD/CAD pair. Hence, it will be prudent to wait for some strong follow-through selling before confirming that the recent bounce from multi-month lows might have already run out of the steam and positioning for any further weakness.
Yesterday, USDCAD initially climbed from 1.3047 up to 1.3162 – a 1 week high. Pullbacks were limited to 1.3120 – above a key tech level @ 1.3090 which had contained USD rallies this week. Overnight, the CAD improved as risk aversion flows eased as NA equity futures were mostly flat. USDCAD declined from 1.3140 down to 1.3077 but moved higher after the release of the Canadian and U.S. jobs data. The U.S. unemployment rate declined further than expected sending the USD broadly higher. Equity markets are selling off yet again with sharp tech losses leading the NASDAQ to a near 10% decline over the past two sessions. Safe haven flows into the USD have led USDCAD higher – all the way back to intra-day highs near 1.3140.
U.S. equities fell as the rotation away from high-flying tech stocks looked set to continue. European shares jumped after France introduced new stimulus measures to drive the economy and spur job creation.
The S&P 500 Index maintained their decline after U.S. initial jobless claims came in slightly better than forecast. Nvidia Corp. and Zoom Video fell in the premarket while JPMorgan Chase & Co. and Bank of America Corp. rose. The euro dipped for a third day on signals the European Central Bank is concerned about the currency's strength. The dollar gained while gold slipped. Treasuries were steady.
U.S. equities rose alongside European stocks as the nearly relentless rally in risk assets continued, supported by dovish comments from policy makers. The dollar rose the most in two weeks. Consumer-staple companies were among the biggest gainers on the S&P 500, with tech shares lagging behind. The Stoxx Europe 600 Index headed for its biggest increase in almost a month. Traders mostly shrugged off data showed U.S. companies added fewer jobs than forecast in August as they awaited the Federal Reserve's Beige Book report on the economy. The euro slid further below $1.20, a level it breached for the first time in more than two years Tuesday. The rally in global stocks has pushed major indexes to record highs as traders bet that a flood of liquidity unleashed by major central banks will make its way to equity markets. The risk-taking was underpinned by dovish commentary from officials including Fed Governor Lael Brainard and European Central Bank Executive Board member Philip Lane on Tuesday. Elsewhere, 10-year bunds rose along with most of their sovereign peers across Europe, benefiting Germany, which took in 33 billion euros ($39 billion) of orders for its first green bonds. West Texas crude oil and precious metals dropped.
U.S. stock rose, with tech once again leading the charge, while European shares drifted. The dollar dropped to a two-year low on growing conviction that U.S. interest rates will stay suppressed, lifting commodity prices.
The Nasdaq climbed almost 1% as Zoom Video Communications Inc. led a market rally in U.S. work-from-home companies after reporting a surge in revenue. Mining shares were among the best performers in the Stoxx Europe 600 as oil, copper and gold gained. The euro strengthened to just below $1.20 and China's yuan touched the highest since 2019. The yield on 10-year Treasuries rose.
On Friday, USDCAD initially dropped from 1.3133 down to 1.3047 before climbing back to 1.3125. USDCAD opened this week at 1.3100 and has moved lower for the 5th consecutive day. The pairing has fallen to the lowest level since Jan. 8th at 1.3022 before moving back up towards 1.3060. Overall, the USD index is at its lowest level since May of 2018.
Yesterday, USDCAD initially dropped from 1.3167 down to 1.3107 before climbing back to 1.3161. A subsequent move lower stalled at 1.3102 and the pairing bounced again to 1.3142. Technically support at 1.3135 which has held on numerous tests this month was broken. Volatility was high after the U.S. Fed officially adopted a new inflation targeting measure which could lead to low interest rates for a longer period of time. The USD initially weakened on the announcement only to recover and briefly trade higher on the session along with the CAD against most major currencies. Overnight, USDCAD dropped to 1.3047 – the lowest level since Jan. 22 ahead of the Canadian GDP report. Although CAD was the top performer yesterday, it has relinquished its gains this morning with USDCAD climbing back to 1.3118.
Bonds and U.S. stocks rose after Jerome Powell reiterated that the Federal Reserve is in no rush to raise interest rates.
Treasury yields fell after Powell said the Fed will seek inflation that averages 2% over time, a step that implies allowing for periods of overshoots. Its shift on maximum employment will allow labor-market gains to run more broadly.
The S&P 500 Index and the Nasdaq 100 climbed, extending Wednesday's rally that pushed both indexes to another record close. Abbott Laboratories jumped after winning clearance for a 15-minute Covid test. The dollar weakened versus a basket of its biggest counterparts..
Stocks extended a streak of record gains as investors reviews expectation for loose monetary policy and mulled the pace of the rally. Treasuries and European government bonds declined. The S&P 500 and Nasdaq indexes hit fresh highs for a fourth straight trading session, while the MSCI All-Country World Index climbed to a record. U.S. orders for durable goods rose in July by more than double estimates, indicating factories will help support the economic rebound in coming months. The Dollar weakened while crude traded near its most costly in five months as Hurricane Laura bore down on key refining facilities on the U.S. Gulf Coast.
Global stocks are on the rise as America and China signaled progress on their phase-one trade deal. Treasuries slipped with the dollar.
S&P 500 advanced and shares rose throughout most of Asia as the two countries reaffirmed their commitment to a deal despite disagreement over issues such as tech security and Hong Kong. The Stoxx Europe 600 Index advanced for a second day after figures showed German companies turning slightly more optimistic on the economic recovery.
Oil edged higher as traders eyed Tropical Storm Laura, which is expected to strengthen into a hurricane before making landfall later this week. U.S. gasoline futures rose to the highest level since March on concern over possible fuel shortages.
The USD/CAD pair dropped to its lowest level since January at 1.3134 on Monday but staged a decisive rebound during the American trading hours. As of writing, the pair was up 0.32% on a daily basis at 1.3212. Earlier in the day, the selling pressure surrounding the greenback helped USD/CAD gain traction. The US Dollar Index started the week on a weak note and fell to a daily low of 92.84 during the European session. In the absence of significant macroeconomic data releases, the risk-positive market environment made it difficult for the USD to find demand. However, the DXY pared its early losses and turned flat on the day above 93.00. Although the reason behind the USD strength was unclear, the fact that Wall Street's main indexes retreated from their opening levels suggests that the risk mood could be softening. At the moment, the index is posting small losses at 93.10. Meanwhile, after advancing to a daily high of $42.89, the barrel of West Texas Intermediate (WTI) erased a large portion of its gains and made it difficult for the commodity-related CAD to stay resilient against the USD. On Tuesday, Conference Board's Consumer Confidence Index and New Home Sales data will be featured in the US economic docket. Later in the day, Bank of Canada (BoC) Deputy Governor Lawrence Schembri is scheduled to deliver a speech.
Yesterday, USDCAD initially climbed from 1.3200 up to 1.3244 – near a 4 day. Since the release of the Fed minutes at 11:00am Wednesday, the USD has been broadly bid across the board. Equity and commodity markets were under pressure in Asia and London before recovering in North America. USDCAD abruptly moved lower to 1.3166 before finishing the day near 1.3180/85. Risk off flows resumed overnight as some Eurozone data missed estimates and Brexit uncertainties resurfaced. European equity markets dropped towards 2 week lows along with oil prices. The USD broadly gained sending the USDCAD back towards weekly highs. Similar to yesterday, North American equities are pushing higher erasing overnight losses. After hitting session highs at 1.3234 this morning, USDCAD has fallen toNA session lows near 1.3190.
Stocks extended gains after closing at a record for the first time since the pandemic started amid a rebound in giant technology companies. Treasuries advanced. The S&P 500 rose as investors assessed earnings from retailers and the latest on stimulus talks ahead of the Federal Reserve's meeting minutes. A buying stampede drove American stocks up more than 50% from this year's lows, with the S&P 500 completing its fastest-ever return to a record after a drop of at least 20%. High-frequency economic indicators and corporate earnings have improved, bolstering optimism on the recovery from a pandemic-induced recession amid ultra-easy monetary policy and massive stimulus. Democratic and Republican leaders are hinting that they are looking for a path toward reviving stalled negotiations on the next round of pandemic relief for the U.S. economy, even as both sides remain far from any deal. The Trump administration sees a possibility for both parties to agree on a smaller round of pandemic relief totaling $500 billion that would omit the biggest areas of disagreement. Boosted by the S&P 500's surge to a record on Tuesday, the market cap of global equities is at an all-time high of $89.7 trillion. Risk assets have rallied since March as unprecedented stimulus measures and gains in technology stocks have outweighed concerns about U.S.-China trade tensions and rising coronavirus cases.
U.S. home construction starts increased in July by more than forecast and applications to build surged by the most in three decades, indicating builders are responding to robust housing demand fueled by record-low interest rates.
Residential starts jumped by 22.6%, the most since October 2016, to a 1.5 million annualized rate from a month earlier, according to a government report released Tuesday. That compared with the median forecast in a Bloomberg survey of 1.25 million and followed an upwardly revised 1.22 million in June.
Yesterday, the CAD was the best performing currency as USDCAD dipped from 1.3258 down to 1.3192 (lowest since Feb. 21) before climbing to 1.3240. Today, the CAD is the worst performing currency. USDCAD initially dropped from 1.3235 down to 1.3206 overnight before climbing to 1.3254. Better than expected Canadian manufacturing data along with weaker U.S. retail sales data resulted in a move back to 1.3230. This was short-lived and USDCAD has since pushed higher to 1.3271. Overall, current rates offer a prime buying opportunity according to the Bank of Montreal which has the fair-value pegged closer to 1.3400.
The number of Americans applying for unemployment benefits fell below 1 million for the first time since the pandemic began in March, suggesting the economic recovery is gaining some traction amid a deceleration in coronavirus infections.
Initial jobless claims in regular state programs fell by 228,000 to 963,000 in the week ended Aug. 8, Labor Department data showed Thursday. Continuing claims -- the total number of Americans claiming ongoing benefits in state programs -- decreased to 15.5 million in the week ended Aug. 1, the lowest since early April.
The USD/CAD pair continued to push lower in the early American session and touched its lowest level in nearly a week at 1.3257. As of writing, the pair was down 0.55% on the day at 1.3238. A renewed selling pressure on the greenback allowed USD/CAD to extends its slide. The data published by the US Bureau of Labor Statistics showed on Wednesday that the core Consumer Price Index (CPI) rose from 1.2% to 1.6% in the US and surpassed analysts' estimate of 1.1%. Furthermore, other data revealed that real average hourly earnings declined by 0.4% on a monthly basis in July. Meanwhile, US Treasury Secretary Mnuchin reaffirmed that President Donald Trump would like to go ahead with a capital gain tax cut. This comment seemingly provided a boost to market sentiment and caused the USD to lose interest. At the moment, US Dollar Index lost is down 0.28% on the day at 93.38. On the other hand, although the OPEC in its monthly report said that it was expecting the global oil demand to decline by 9.06 million in 2020, crude oil preserved its bullish momentum. With the barrel of West Texas Intermediate (WTI) gaining nearly 2% on the day at $42.40, the commodity-sensitive loonie gathered further strength against its rivals. Later in the session, the US Energy Information Administration's weekly Crude Oil Stocks Change data will be watched closely by the market participants.
U.S. stock advanced after President Donald Trump said he's considering a tax cut on capital gains and American hospitalizations for Covid-19 fell to their lowest in a month.
A broad rally from industrial goods to health-care shares set the Stoxx Europe 600 Index headed for its best increase in a week.
Treasuries and European bonds extended their declines. The dollar turned lower against its major peers including the euro, after a German gauge of investor confidence unexpectedly surged. Gold fell for a third day.
Technology shares led U.S. stocks lower after the benchmark S&P 500 approached an all-time high reached before the coronavirus pandemic. Crude oil gained and the dollar strengthened. The tech heavy Nasdaq Composite Index slumped for a second day. The S&P 500 Total Return Index, which includes reinvested dividends, rose earlier to an all-time high, exceeding its February peak. The price-only version rose to less than 1% away from breaking out before turning red. In Europe, stocks advanced led by financial companies. Chinese equities climbed on the back of data showing the economy continuing to recover from the pandemic, with consumer inflation accelerating. On Saturday, President Donald Trump signed four executive orders to maintain some assistance, including for unemployment benefits, a temporary payroll tax deferral, eviction protection and student-loan relief. Trump's policy announcements come as Democrats and Republicans are still negotiating a broader additional virus relief package. The two sides are still trillions of dollars apart on overall spending and on key issues, including aid to state and local governments and the amount of supplementary unemployment benefits. European stocks briefly dipped on Monday after China retaliated against the U.S. by sanctioning 11 Americans. The list includes Senators Marco Rubio and Ted Cruz, but no members of the Trump administration. Still, it's another sign of discord between the two nations as the Trump administration takes a harder line against China in the run-up to the November election
Yesterday, USDCAD dipped to 1.3244 – just shy of Wednesday's low of 1.3234 (lowest since Feb. 21) before climbing to 1.3323. After equity markets rallied to new highs, USDCAD dropped back to 1.3275 before climbing back to 1.3320 in late trade as Trump announced a 10% tariff on Canadian aluminum imports into the United States. The CAD continued to weaken overnight as Canada threatened $ for $ countermeasures sending USDCAD back up through the broken support zone (1.3320-1.3330) to a high of 1.3372. Both Canadian and U.S. job numbers beat estimates while North American equity markets recouped overnight losses. The S&P 500 and NASDAQ are holding near all-time highs. USDCAD dipped to 1.3325 but has since turned higher on broad-based USD strength. U.S. yields are higher as well while the Dollar index has climbed from 27 month lows (92.50) towards a 4 day high (93.62). The USDCAD rally higher stalled just shy of 1.3400 before easing back to 1.3375. The market now awaits any news on the Covid stimulus front as the U.S. has yet to finalize a new deal to replace the support that expired at the end of July