• Financial Institutions
  • Corporations
  • Travelers
  • Foreign Bank Note Exchange
  • International Drafts
  • International Wire Transfers
  • Global EFT
  • Compensation De Chèques En Devises Étrangères
  • Traites Bancaires En Devises Étrangères
  • Travel
  • Technology Companies
  • Payroll
  • Healthcare
  • Nonprofit
  • Partnerships

USDCAD sold as sense of calm returns to markets broadly. AUD selling leads broad USD rebound overnight. Trade figures out shortly and jobs reports out tomorrow.

CXI April 5th, 2018


  • USDCAD: Dollar/CAD had another tough session yesterday.  The market extended a little bit higher after the NY open but those gains fizzled just shy of trend-line resistance at 1.2850 and this also coincided with a positive open for US stocks.  We then saw crude oil recoup its daily losses after a larger than expected draw in the weekly DOE inventory report.  This helped CAD and risk sentiment overall.  Stocks continued higher as a sense of calm returned to markets, and the USD started to see selling pressure across the board.  USDCAD then took out chart support at 1.2815, and this opened the door for a retest of the recent lows, which the market did very easily as a massive short covering rally ensued for stocks in the afternoon.  The NY close was negative in that we closed right at the 1.2770 support level.  This allowed for traders to push the market a little lower at the start of Asian trade, but USDCAD finally caught a bid when AUDUSD failed at 0.7725 (trend-line resistance).  The Aussie has been on the back foot ever since.  Europe has stepped in and bought USD broadly today against EUR, GBP and JPY.  All this is helping USDCAD inch back above the 1.2770 support level, but there’s not much momentum behind it at this hour.  Next up are the February Trade Balance figures for both the US and Canada (8:30amET).  While not normally huge market movers, these releases might get closer scrutiny considering there’s nothing else on the calendar today.  Canadian dollar futures traders liquidated 2668 contracts during yesterday’s USDCAD sell off.  The CAD crosses are not looking too hot this morning with EURCAD failing to regain the 1.57s and GBPCAD breaking decisively below 1.8000.  We think USDCAD retains a range-bound to bid tone here however, so long as the 1.2760-70s hold.  Should support break, traders will be focused on the next meaningful support level (1.2720).  Resistance today is 1.2815, then 1.2850.  Tomorrow will be a big day for USDCAD traders as we’ll get the March employment reports for both the US and Canada.

Tune in @EBCTradeDesk for more real-time market coverage.


Market Analysis Charts

USD/CAD Daily Chart

USD/CAD Hourly Chart

EUR/CAD Daily Chart

GBP/CAD Daily Chart

Charts: TWS Workspace

About the Author

Erik Bregar

Erik Bregar - Director, FX Trading

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Erik works with corporations and institutions to help them better navigate the currency markets. His desk provides fast, transparent, and low cost trade execution; up to the minute fundamental and technical market analysis; custom strategy development; and post-trade services -- all in an effort to add value to your firm’s bottom line. Erik has been trading currencies professionally and independently for more than 12 years. Prior to leading the trading desk at EBC, Erik was in charge of managing the foreign exchange risk for one of Canada’s largest independent broker-dealers.

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