USD/CAD
USD CAD
- CAD (-)
- Real time data - Forex
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Type: Forex
Ticker: USDCAD
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USD/CAD - Stocks Grind Higher As The Dollar Dipped - 09/16/2021 (GMT)

  • Who voted?
  • 146
  • 1
  • Chart + Price target(s)

  • Target : Upper
  • |
  • Target 1 : 1,275
  • |
  • Target 2 : 1,28
  • |
  • Target 3 : 1,285
  • |
  • Invalidation threshold : 1,257

  • Timeframe : 8H

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STATE OF THE MARKETS
Stocks grind higher as the Dollar dipped.
 US stocks grind higher on Wednesday with Dow (+0.7%), S&P (+0.9%) and Nasdaq (+0.8%) pared earlier losses after risk appetite returned in the light of better than expected manufacturing growth and industrial production. Dollar dipped and high beta currencies were favored as bond prices fell, sending yields lower with the 10Y benchmark back above 130 basis points.

In the commodities market, crude surged higher after EIA reports showed that reserves fell more than expected, confirming more consumption as economic re-opening  gained momentum. The black gold settled above $72.60/bl as New York closed. On the sides, gold closed back below $1,800/oz as the non-yielding asset lost favor with yields seeking investors.

In the FX space, optimism was evident as Dollar and Swiss were offered across the board, though investors remained cautious with Yen remaining in bids for the short and medium term accounts. Short and medium term accounts seemed to prefer Loonie and Kiwi while long term accounts prefer Kiwi and Aussie. US jobless claims will be on close watch Thursday.

OUR PICK – USD/CAD
We see temporary optimism.
 We see current risk appetite pick up as temporary and investors are prepping for a hawkish Feds next week and we favor FX as a pick. We saw more bullish Dollar buying with Loonie being second while the least bought is Sterling. Crude has advanced further but it has not positively affected Loonie as much as it used to since concerns over delta spreads and new lockdowns weigh on the commodity. We favor long for the short and medium term.

Disclaimer:
This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
This member declared having a buying position on this financial instrument or a related financial instrument.

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