Who is trading Canadian dollar?

By 28/05/2021News
morning-news

Gold  1891,425
(-0,26%)

EURUSD   1,2183
(-0,10%)

DJIA  34585,50
(+4,04%)

OIL.WTI  67,155
(+9,89%)

DAX   15424,50
(+1,60%)

Our newsletters rarely cover the outlook for the Canadian dollar. This is due to the “more interesting” currencies and comodities traded by our subscribers. However, that does not stop us from keeping an eye on the US dollar/Canadian dollar pair. Now is the moment when all active traders should pay close attention to it.


USD/CAD

USDCAD

Above is not our usual daily chart, but a monthly chart of the US dollar/Canadian dollar pair. What do we see there? The price has approached a 6-year low from as far back as 2015. Moreover, it is now just above the all-important circular level of 1.20. If we go to the daily chart, we can see that the bears have been trying to sell it for a few days now, but so far without much success.
What are we showing it for? There could be very strong moves in this pair in the coming days, either one way or the other. This means that it becomes interesting for our traders. There is a potential to take a big movement.
What is important to understand? Breaking through the level of 1.20 in the next few days is probably not going to tell us anything. Why? The fact is that the markets are waiting for the US and Canadian unemployment data, which will be released next Friday. Synergies are emerging. It is very common for data to come out better than forecast in Canada and worse in the US. Or vice versa. And that actually doubles the movement.
By the way, why did the Canadian dollar rise so much compared to the levels shown in previous years? The stars have aligned. On the one hand the US dollar is depreciating because of the huge amount of unsecured money. And on the other hand oil prices have risen sharply. Black gold is Canada’s main export product. What’s more! It is not just a question of the physical sale of oil. The rise in its value is leading to investments in new wells and infrastructure. The investment comes in US dollars and is exchanged for Canadian dollars, leading to an even greater demand for it.

14.30 US Personal Income for April
14.30 US Personal Spending for April
16.00 US University of Michigan Consumer Confidence Index for May


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