Created
: 2024.10.15
2024.10.15 20:52
The Canadian Dollar (CAD) has lost ground against the USD for 10 days on the trot now--Bloomberg reports that this is the worst run for the CAD since 2017. The CAD is oversold and the sustained sell-off is, like the bull run in the USD more broadly, unlikely to extend much further without some sort of pause or minor consolidation in my opinion, Scotiabank's Chief FX Strategist Shaun Osborne notes.
"Today's CPI is expected to show further progress on headline inflation--down 0.3% in the September month for a 1.8% rise in the year. Core Median and Trim measures are expected to rise 2.3% (the same as August) and 2.5% gains (up from 2.4%) respectively. With the CAD on the ropes and progress on core inflation slow, the data may bring additional reasons for the Bank to avoid an aggressive rate cut at the end of the month."
"There are no evident signs that the USD is poised to retreat but it's rally is looking stretched. Some consolidation in the next few days would not surprise but the trend higher remains quite strong and the CAD will need to recover through 1.3600/10 to show any real sign of technical strength. More likely is that minor dips (to the low/mid 1.37 area) will remain well supported."
|USD/CAD RSI is overbought on the daily study but DMIs are aligning bullishly for the USD across the short- , medium- and long-term oscillators which will keep the USD trend supported on minor dips for now. Resistance is 1.3850 and 1.3950 (recent peaks)."
Created
: 2024.10.15
Last updated
: 2024.10.15
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy