Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Octa trading broker
Open trading account
Back

USD/CAD remains confined in a range near multi-year lows, around 1.2100 mark

  • A combination of factors assisted USD/CAD to hold steady near the 1.2100 mark on Tuesday.
  • An uptick in US bond yields, weaker risk tone drove some haven flows towards the USD.
  • Sliding crude oil prices undermined the loonie and extended some support to the major.
  • The lack of follow-through buying warrant caution before positioning for any recovery.

The USD/CAD pair lacked any firm directional bias and was confined in a narrow trading band, around the 1.2100 mark through the first half of the European session.

The pair, so far, has struggled to register any meaningful recovery and remained well within the striking distance of near four-year lows touched in the previous session. The divergence in monetary policies adopted by the Bank of Canada and the Federal Reserve continued acting as a headwind for the USD/CAD pair.

The BoC reduced its weekly asset purchases at the April policy meeting and brought forward the guidance for the first interest rate hike to the second half of 2022. Conversely, the Fed maintained its stubbornly dovish bias and reassured to maintain the current accommodative monetary policy deeper into the recovery.

That said, a combination of factors extended some support to the USD/CAD pair and helped limit any further losses, at least for now. The US dollar found some support from a modest uptick in the US Treasury bond yields, led by speculations that rising inflation might force the Fed to tighten its monetary policy sooner rather than later.

Adding to this, a generally weaker tone surrounding the global equity markets further drove some haven flows towards the safe-haven USD. On the other hand, retreating crude oil prices – now down around 0.65% for the day – undermined the commodity-linked loonie. This was seen as another factor lending some support to the USD/CAD pair.

From a technical perspective, extremely oversold conditions on short-term charts further held bearish traders from placing fresh bets. However, the USD/CAD pair's inability to gain positive traction suggests that the recent well-established downtrend might still be far from being over, warranting caution before positioning for any meaningful recovery.

Technical levels to watch

 

US Nonfarm Payrolls disappointed in April – UOB

Senior Economist at UOB Group Alvin Liew reviews the latest labour market report (Friday). Key Quotes “The US economy continued to add jobs in April b
Read more Previous

EUR/JPY Price Analysis: The hunt for 133.00

EUR/JPY quickly leaves behind Monday’s small pullback and returns to the 132.50 region, trading at shouting distance from YTD highs on turnaround Tues
Read more Next