USD/CAD Fundamentals for Dummies | Technical Bias backed by Fund
When the Bank of Canada kept its previous forward guidance in place earlier this month, it didn't surprise anyone. It said that it would start to raise interest rates in early 2022. Over the last few days, the central bank has said a little more about the omicron variant, but it still doesn't think it will have a big impact on interest rate policy in 2019. People are still worried about KeyEventRisk because of the effects of global lockdowns on risk sentiment and because of rising geopolitical tensions. Price action has been forced into a range between important technical levels from the past. Even though the spread of the omicron variant is possible, the bigger problem is what it could do to the supply chain. This has already caused inflation to rise to uncomfortably high levels. Trading volumes are going down and volatility is also going down in the run-up to the holidays. This is one of those weeks when it's best not to pay too much attention to market movements.
The reason might be that this is a good time to think about how you did last year and see if there are any patterns. Are you more successful at a certain time of the day or when you're trading a certain type of asset, for example? When you keep a trading journal, it makes it easier to look at your performance over a long period of time. The way that I see it, the number of people buying and selling things is going down, which has led to a drop in prices. Markets aren't moving as much today as they did on Tuesday, and this is likely to continue for the rest of the week because there aren't many good stories to trade. It's important to keep in mind, though, that there are some risks in the current Russian-Ukraine tensions. When it comes to currencies, the cross-JPY has turned a corner because bond yields have risen and stocks have stabilized. As I said yesterday, the Canadian Dollar, on the other hand, doesn't seem to be keeping up with the rest of the world, as I said yesterday during the rise in both stocks and oil prices. There has been a recent rise in oil prices and a recent shift in the spreads on the 5-year bonds between Canada and the United States. This means that the loonie may be undervalued. Better still, you could use this time to look over our educational materials, which will help you become a better trader. People thought there was a 100% chance that the Bank of Canada would raise interest rates in March by 25 basis points. They thought there was a 13% chance that it would raise rates by 50 basis points. As a result of the sharp drop in oil prices since late November, overnight swaps for Canada's 10-year government bond are now predicting that the first 25-basis point rate hike will happen in March 2022. Energy accounts for 11 percent of Canada's GDP. As for the first half of 2022, if the Bank of Canada doesn't raise interest rates in March, April has already priced in a 100% chance that rates will rise by 25 basis points and a 66% chance that rates will rise by 50 basis points. There is a key level of resistance at $72. If the bulls can break through this level, oil could move up to about $80.00. On the other hand, fears of higher wage inflation in the United States could make people think the Fed will be more likely to raise interest rates. As a result, more people might be willing to sell crude oil, which could keep the bear market going. WTI could come back to psychological support at $70.00 per barrel of crude oil. In the short term, it looks like demand is going to outstrip supply in the near term.
The reason might be that this is a good time to think about how you did last year and see if there are any patterns. Are you more successful at a certain time of the day or when you're trading a certain type of asset, for example? When you keep a trading journal, it makes it easier to look at your performance over a long period of time. The way that I see it, the number of people buying and selling things is going down, which has led to a drop in prices. Markets aren't moving as much today as they did on Tuesday, and this is likely to continue for the rest of the week because there aren't many good stories to trade. It's important to keep in mind, though, that there are some risks in the current Russian-Ukraine tensions. When it comes to currencies, the cross-JPY has turned a corner because bond yields have risen and stocks have stabilized. As I said yesterday, the Canadian Dollar, on the other hand, doesn't seem to be keeping up with the rest of the world, as I said yesterday during the rise in both stocks and oil prices. There has been a recent rise in oil prices and a recent shift in the spreads on the 5-year bonds between Canada and the United States. This means that the loonie may be undervalued. Better still, you could use this time to look over our educational materials, which will help you become a better trader. People thought there was a 100% chance that the Bank of Canada would raise interest rates in March by 25 basis points. They thought there was a 13% chance that it would raise rates by 50 basis points. As a result of the sharp drop in oil prices since late November, overnight swaps for Canada's 10-year government bond are now predicting that the first 25-basis point rate hike will happen in March 2022. Energy accounts for 11 percent of Canada's GDP. As for the first half of 2022, if the Bank of Canada doesn't raise interest rates in March, April has already priced in a 100% chance that rates will rise by 25 basis points and a 66% chance that rates will rise by 50 basis points. There is a key level of resistance at $72. If the bulls can break through this level, oil could move up to about $80.00. On the other hand, fears of higher wage inflation in the United States could make people think the Fed will be more likely to raise interest rates. As a result, more people might be willing to sell crude oil, which could keep the bear market going. WTI could come back to psychological support at $70.00 per barrel of crude oil. In the short term, it looks like demand is going to outstrip supply in the near term.
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