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.
Cancel Confirm
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.
Confirm
Octa trading broker Sign up Log in
Octa trading broker
Open trading account
Trading news
Back
1 Aug 2022

USD/CAD remains depressed near 100-DMA amid weaker USD, ahead of US ISM PMI

  • USD/CAD drops to its lowest level since June 10 amid the prevalent USD selling bias.
  • Diminishing odds for more aggressive Fed rate hikes continue to weigh on the buck.
  • Weaker oil prices could undermine the loonie and help limit deeper losses for the pair.

The USD/CAD pair reverses a modest intraday uptick to the 1.2820 region and turns lower for the fourth successive day on Monday. This also marks the fifth day of a negative move in the previous six and drags spot prices to the lowest level since June 10, around the 1.2765 region during the mid-European session.

The US dollar is prolonging its post-FOMC downfall and the selling remains unabated on the first day of a new week, which, in turn, is exerting downward pressure on the USD/CAD pair. It is worth recalling that the Fed last week hinted that it could slow the pace of the rate hike campaign at some point. Furthermore, the disappointing release of the Advance US GDP report last Thursday fueled speculations that the Fed would not hike interest rates as aggressively as previously estimated. This is seen as a key factor that continues to weigh on the greenback.

That said, a combination of factors, for now, seems to have eased the bearish pressure surrounding the USD/CAD pair and helped bulls to defend the 100-day SMA. An intraday bounce in the US Treasury bond yields, along with recession fears, offers some support to the safe-haven buck. Worries about an economic downturn, meanwhile, weigh on crude oil prices. This is undermining the commodity-linked loonie and holding back bears from placing fresh bets.

Traders also seem reluctant and might prefer to move on the sidelines ahead of this week's key macro data scheduled at the beginning of a new week. A packed US economic docket kicks off with the release of the ISM Manufacturing PMI on Monday. This, along with the US bond yields and the broader market risk sentiment, would drive the USD demand. Apart from this, oil price dynamics should allow traders to grab short-term opportunities around the USD/CAD pair.

The focus, however, would remain on the closely-watched US monthly jobs report - popularly known as NFP on Friday. Traders will further take cues from the simultaneous release of Canadian employment figures. This would play a key role in determining the next leg of a directional move for the USD/CAD pair.

Technical levels to watch

 

Aug 1, 2022

South Africa Total New Vehicle Sales increased to 43593 in July from previous 41019

South Africa Total New Vehicle Sales increased to 43593 in July from previous 41019
Read more Previous
Aug 1, 2022

EUR/USD Price Analysis: Further upside needs to clear 1.0280

EUR/USD’s upside momentum has faltered once again around the 1.0270 region at the beginning of the week. Ideally, the pair should clear the area of re
Read more Next