USD/CAD to rise above 1.40 in the coming months
# POST-MARKET | TRADE MARK
- Update on Measurement
U.S. Dollar / Canadian Dollar
- 4H & 1H
USD Bias | Bullish
- Monetary policy dynamics should favor Dollar strength into the early part of next year
- Softer growth outlook that will drive safe-haven flows towards the Dollar
- Several factors support Dollar strength
- Reasonably steady US economic trends and hawkish leaning Fed
USD Bias | Bearish
- Anticipated slowdown of the US economy
- The hurdle for raising rates this month is higher, implying fresh US Dollar falls
- Dollar weakness will pick up pace during 2024 as market attention turns toward Fed rate cuts
- Fed feels more comfortable with receding inflation
CAD Bias | Bearish
- Economic developments in Canada less constructive
- Slowing growth, lower commodity prices, and substantial monetary easing
- Spending out of control and taxation widening
- Canadian headwinds continue to mount
CAD Bias | Bullish
- Fresh wave of demand for commodities and robust economic data
- Some Silver linings from CAD after BoC pause
- Loonie is an attractive pro-cyclical bet
- With BoC aggressively raising rates and oil prices around 100, outlook for CAD is positive
Conclusion | Trade Plan Execution & Risk Management on Demand
- USD/CAD holds position around 1.3850 after pulling back from eight-month highs
- Update on Measurement
U.S. Dollar / Canadian Dollar
- 4H & 1H
USD Bias | Bullish
- Monetary policy dynamics should favor Dollar strength into the early part of next year
- Softer growth outlook that will drive safe-haven flows towards the Dollar
- Several factors support Dollar strength
- Reasonably steady US economic trends and hawkish leaning Fed
USD Bias | Bearish
- Anticipated slowdown of the US economy
- The hurdle for raising rates this month is higher, implying fresh US Dollar falls
- Dollar weakness will pick up pace during 2024 as market attention turns toward Fed rate cuts
- Fed feels more comfortable with receding inflation
CAD Bias | Bearish
- Economic developments in Canada less constructive
- Slowing growth, lower commodity prices, and substantial monetary easing
- Spending out of control and taxation widening
- Canadian headwinds continue to mount
CAD Bias | Bullish
- Fresh wave of demand for commodities and robust economic data
- Some Silver linings from CAD after BoC pause
- Loonie is an attractive pro-cyclical bet
- With BoC aggressively raising rates and oil prices around 100, outlook for CAD is positive
Conclusion | Trade Plan Execution & Risk Management on Demand
- USD/CAD holds position around 1.3850 after pulling back from eight-month highs
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.