Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Back

USD/CAD remains pressured towards 1.2500 near two-week low, US Q2 GDP, oil moves eyed

  • USD/CAD bears take a breather following the heaviest fall in a week.
  • Firmer WTI oil prices extend post Fed weakness, US stimulus news also favor bears.
  • Canada CPI, covid woes fail to disappoint sellers ahead of US Q2 GDP.

USD/CAD stays depressed around 1.2525, down 0.07% on a day, amid Thursday’s Asian session. The Loonie pair dropped the most in a week the previous day after the US Federal Open Market Committee (FOMC) meeting. Also favoring the pair sellers is the oil prices strength and chatters over the procedural passage of the US infrastructure spending bill.

The Fed matched wide marked expectations of announcing no monetary policy change, despite mentioning, “continuing economic improvement,” during the July meeting. However, it’s Chairman Jerome Powell who weighed down the US dollar by saying, "Economy has made progress toward goals since setting the bar for taper in December and will continue to assess progress in coming meetings."

Elsewhere, prices of WTI oil refreshed two week top as downbeat US dollar and higher-than-expected depletion in the official inventories from the US Energy Information Administration (EIA) favored the Canadian dollar (CAD) due to Ottawa heavy reliance on energy export.

Also negative for the USD/CAD prices could be the latest headlines from Reuters confirming that the US Republican Party has enough votes to push President Joe Biden’s infrastructure spending plans in the Senate. The latest update said that the bill has 67 votes in favor to to begin a debate.

It’s worth mentioning that the previous day’s Canadian Consumer Price Index (CPI) figures for June mostly matched market consensus and offered no challenges to the Bank of Canada’s (BOC) hawkish view, which in turn were ignored ahead of the Fed.

Amid these plays, S&P 500 Futures struggle for clear direction and so do oil prices amid a quiet session with a light calendar in Asia.

Hence, today’s preliminary reading of US Q2 GDP, expected 8.6% annualized versus 6.4% prior, will be the key. Additionally, covid updates, oil price moves and stimulus news could also entertain USD/CAD traders.

Read: US Q2 GDP Preview: Economy to continue to expand at strong pace, eyes on FOMC

Technical analysis

21-DMA and an ascending support line from June 11 restrict immediate downside around 1.2520. However, USD/CAD bulls are less likely to enter until the quote stays below the 200-DMA level of 1.2600.

 

GBP/USD reclaims 1.3900 mark post-Powell comments, softer USD

GBP/USD refreshes daily high in the Asian trading session Thursday. The pair extends the previous two day’s gains and recoups the 1.3900 mark. At the
Read more Previous

GBP/CAD Price Analysis: Bears eye 1.7350 target on hourly closes below 1 .7410

As per the prior analysis, GBP/CAD Price Analysis: Bear stepping in to target downside liquidity, the market has indeed moved lower and the following
Read more Next