Canada posted great jobs data this morning after adding 230K new jobs in June, and unemployment rate met expectations at 7.8%, last month's was 8.2%. Oil is another big factor in the Canadian economy, and the latest OPEC meeting showed us some bearish sentiment as countries could not reach agreement. So far today, CAD has been up overall on this jobs news, but other factors are keeping things mixed for investors.
When it comes to the Canadian dollar alone, I am more bullish than not. And latest jobs news is a bullish sign going into next week as other countries are hurting like the US in unemployment claims. The recent rise in oil prices is a good sign too for the loonie, and USDCAD next week will probably be bearish up until US PPI news at the least.
USDCAD on the 4H timeframe is still in an uptrend from early June, but recent price action and news suggests that we might be in for another leg lower. Price is still currently sitting on support, but if that breaks, we might see price go all the way back to a supportive trend line. However, price could see a bounce off this key support level.
CJ looks very bullish going into next week as the yen continues loses its luster amid risk-on sentiment. Safe havens are not looking as attractive right now, and this pair is heading toward resistance around 88.500 on the 4H timeframe. We can look for a break above this resistance line in order for price to come up and test more resistance at 88.900s.
CADCHF also looks bullish down at this price, especially since price has a ways to go to hit resistance around 0.73619 on the 4H timeframe. Could be a good play if you're trying to go against safe haven plays like the Yen or Swiss Franc.
9/17/2021 Stocks are down -0.58% this morning after coming down to test a significant level of support once again. While stocks fall, the dollar rises in the anticipation of sooner-than-expected tapering by the Fed along with a hike in interest rates starting in 2022. Our outlook Other than September being one of the worst months […]
9/16/2021 The Euro-Dollar pair is down over 0.5% today after several days in the red. Today's speech by EU president Lagarde mentioned how the economic recovery had come quicker than expected six months ago. This was praised by the prompt vaccine distribution so citizens could get back to work. Across the pond, the US just […]
9/14/2021 This morning's report on CPI m/m and core CPI m/m came in at a lower percentage than expected which resulted in a falling dollar pre-New York session. The USD is now volatile under the uncertainty of potential tapering and rising rates while the equities market seems to be rising because of this. Our outlook […]
9/13/2021 Big money has been moving out of Australia's currency for nearly a month now which has been the biggest drop in long contracts in this amount of time year-to-date. Australia's dollar index (AXY) is up 0.06% at 73.61 on the day after rebounding from the lows around 71.19. Our outlook Australia's economy has surprised […]