GMT NewYork London Moscow Tokyo Sydney

Posts tagged: USD/CAD

UBS FX Strategy: Spot Desk – More USD Buying

If you wish to receive this report (and many other) on a daily basis,
subscribe or request a free 5-day trial.

UBS forex research

 

 

Spot Desk – More USD Buying

Zurich Spot Desk

 

EURUSD: Market participants that took advantage of the short squeeze earlier in the week were happy to take some profit ahead of the 1.1200 level that was toppish for almost two months; the pair has dropped 500 pips from the Monday high. Expect buying interest below 1.1200, while sellers will be lined up ahead of 1.1360/70. Flows are split between those piling into fresh USD longs and short term profit-takers. Support at 1.1230, 1.1200, and 1.1150; resistance at 1.1270, 1.1305, and 1.1365.

USDCHF: The US dollar has been trading strong after good US data, and many in the market had to jump on the bandwagon after getting squeezed out of position earlier in the week. We think the rally in risk is still fragile and volatility will surely persist for a while. The pair has tested the resistance at 0.9660/80, so if you are looking for a level to sell at, that might be it. Support at 0.9580 and 0.9541. Despite the strong rally yesterday, EURCHF remains in range. Support at 1.0750; resistance at 1.0880/1.0900.

Cable continued its downtrend yesterday, but stopped abruptly at the 200-day moving average. The pair was offered all day with the US dollar being bought across the board. EURUSD came off its high and we saw GBPUSD trade through the 100-day moving average at 1.5472 and then below 1.5400. It feels like US dollar buying could continue at lower levels. GBPUSD support at 1.5371, 1.5330, and 1.5191; resistance at 1.5454, 1.5508, and 1.5594.

EURGBP: We are biased towards selling rallies to the 200-day moving average at 0.7360. Support at 0.7279, 0.7260, and 0.7200; resistance at 0.7359, 0.7400, and 0.7421.

AUDUSD has been grinding higher on the sharp bounce in risk-on sentiment and the correction for oil. The poor capex figures yesterday and higher US yields probably explains why the pair’s move higher has been reluctant. Watch USD/EM to see if there is a further correction. If so, AUDUSD could trade back up to 0.74/0.75. We are skeptical that this rally in risk is sustainable, but recommend staying flexible because there has only been a small AUDUSD so far, relative to the moves for USDJPY and EURUSD.

NZDUSD has been trading in-sync with AUDUSD. There should be decent support at 0.6400, with the risk of a move up to 0.66/0.67.

USDCAD is trading around the same level as yesterday, but oil has gained a lot of ground, so as long as the general picture doesn’t change we are happy to be short up to 1.3220/30, with a stop above 1.3250, targeting a move towards 1.3140/50.

EURSEK and EURNOK came under pressure yesterday, with the latter leading the way on the correction for oil. Sell rallies in EURSEK towards 9.60, with a stop above 970; it is currently trading just above the support at 9.49/9.50. Sell EURNOK rallies between 9.40 and 9.50, with a stop above 9.60. The key pivot in the downside is 9.20. Swedish retail numbers are due this morning at 9:30am CET, with Norwegian unemployment data at 10:00am CET.

Chart of the day: USD bid as US bonds sell-off

If you wish to receive this report (and many other) on a daily basis,
subscribe or request a free 5-day trial.

Barclays Daily FX PDF Research

Chart of the day: Signs of a US Dollar bid

If you wish to receive this report (and many other) on a daily basis,
subscribe or request a free 5-day trial.

Barclays PDF

Daily FX Update

The focus is the USD, with a renewed bout of strength into the NA open. Read more »

UBS FX Strategy

AUDUSD traded up to 0.7731 after the weaker-than-expected US retail sales data yesterday. Read more »

Daily FX Update

The USD is retracing into the NA open, suffering losses against all the majors. Read more »

Daily FX Update

European currencies are under stress as peripheral countries Read more »

Daily FX Update

Into the NA open commodity currencies are strong, as the RBA left policy on hold, Read more »

Daily FX Update

Into the NA open markets are digesting the PBoC rate cut, Read more »

Daily FX Update

Markets are mixed into the NA open, with softness in equities, Read more »

Daily Technical Report

EUR/USD has broken to the downside out of the range defined by Read more »

FX Daily Majors

Today’s highlights:
EURUSD has staged a bearish breakout, Read more »