Breaking News
0

USD/CAD: Where’s The Bottom?

By Kathy LienForexJul 19, 2019 04:51PM ET
www.investing.com/analysis/usdcad-wheres-the-bottom-200442159
USD/CAD: Where’s The Bottom?
By Kathy Lien   |  Jul 19, 2019 04:51PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Kathy Lien, Managing Director Of FX Strategy For BK Asset Management

Daily FX Market Roundup July 19, 2019

The U.S. dollar traded higher against all of the major currencies on Friday including the Canadian dollar but even with the day’s rise, it is too early to declare a bottom in USD/CAD. Canada’s retail sales report was the most market-moving piece of data Friday and while it printed much worse than expected, the boost that it provided for the pair was short lived. The pair surged above 1.31 but the rally fizzled almost as quickly as it happened. The selling pressure is strong for one reason alone, which is that the U.S. dollar is weak. Economists had predicted a 0.3% rise in Canadian retail sales and the -0.1% decline caught everyone by surprise. It's the first drop in 4 months and a big miss that was driven by weaker demand for food and alcohol. Consumer prices also dropped -0.2%, the first decline this year. The year-over-year rate was pushed down to 2% from 2.4%. Lower inflation is one of the central bank’s main concerns and when combined with the pullback in spending, we can understand why the Bank of Canada turned dovish this month. With oil prices falling 6 out of the last 7 trading days, we continue to believe that it will only be a matter of time before USD/CAD bottoms. Meanwhile, the best opportunities for selling the Canadian dollar will be the crosses. USD/CAD has been consolidating in a tight range for the past month while AUD/CAD and NZD/CAD have enjoyed nearly one-way gains. In the near term, we are particularly bearish CAD/JPY and EUR/CAD. As for USD/CAD, a bottom is near but we need to see a close above 1.31 for a bottom to be declared.

USD/CAD
USD/CAD

Meanwhile, the U.S. dollar plunged Thursday after Fed President Williams talked about taking a preemptive move with interest rates but on Friday morning, the greenback traded higher across the board as the central bank tries to correct the confusion between magnitude and timing. Yes, there’s no doubt that the Fed wants to ease and is likely to do so later this month, but as Fed President Bullard noted in an interview with Dow Jones earlier this month, a 25bp cut would be appropriate. The dollar is up the most versus the euro and yen. Weaker-than-expected German PPI pushed EUR/USD lower – the ECB meets next week and they are expected to set the stage for easing. Sterling is the most resilient but the losses in the New Zealand dollar was moderated by stronger-than-expected credit-card spending.

USD/CAD: Where’s The Bottom?
 

Related Articles

USD/CAD: Where’s The Bottom?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Jerry Agnello
Jerry Agnello Jul 21, 2019 2:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
great information
Sang Em
Lexuansang Jul 20, 2019 6:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Your
Nnenna Ewa
Nnenna Ewa Jul 20, 2019 5:51PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank you Katty.
Akash Fx
Akash Fx Jul 20, 2019 11:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hii i am using this indicatore.https://www.forexwebstore.com/product/price-action-scalping-system-non-repainted/
Muhammad Rai
Muhammad Rai Jul 20, 2019 11:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Very good insight.. Thanks
Gamer Throne
Gamer Throne Jul 20, 2019 6:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Great piece, I often read your articles to prepare for the week.
Nnenna Ewa
Nnenna Ewa Jul 20, 2019 6:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
same here
hemant sukhija
hemant sukhija Jul 20, 2019 5:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
On Friday when cad sales data have been wrost....than nzdcad gain 50-60 pips but after why nzdcad came in sell....please give answer of my this quairy...??
sheoshankar singh
sheoshankar singh Jul 20, 2019 3:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Cad/sgd anyone?
Reshad Kerimli
Reshad Kerimli Jul 20, 2019 2:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thanks Lien
XTrader Durham
XTrader Durham Jul 20, 2019 2:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
1.2000 = Údcad? Long term!
Tèo Phan
Tèo Phan Jul 19, 2019 9:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks Liên
Ajay Mathur
Ajay Mathur Jul 19, 2019 7:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks
Hunter Sayle
Hunter Sayle Jul 19, 2019 6:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks Kathy
Jon Daye
Jon Daye Jul 19, 2019 5:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks Kathy I appreciate your insight.
Kim Boesgaard Lauritsen
Kim Boesgaard Lauritsen Jul 19, 2019 5:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks Kathy, you are always spot on, have a great day
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email