Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Tesla shares spike despite earnings miss

News

Gold loses some shine after hitting record highs

News

Avoid the tech wreck with PayPal?

News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

Trends & Analysis
News

Tesla shares spike despite earnings miss

News

Gold loses some shine after hitting record highs

News

Avoid the tech wreck with PayPal?

News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

Asset Watch

Has the CAD rally run its course?

Wednesday, July 4, 2023

Following several months of decelerating year-over-year (YoY) inflation increasing investors’ optimism, volatility has largely gone missing across the financial markets. Risk-on assets have outperformed their risk-off counterparts, however, with base effects ending after the June CPI data is released on Jul. 12, U.S. inflation could become problematic again and help flip the script.
If so, the Canadian dollar could be on the defensive, and it would be the greenback’s time to shine. From a technical perspective, the setup is quite constructive. The USD/CAD bounced off its weekly rising support line (the grey line), which halted four-straight weeks of losses.

The currency pair’s 100-week moving average acted as resistance during the December 2021 and February/March 2022 rallies, while the August 2022 drawdown ended near the key level. More importantly, the USD/CAD’s 100-week MA is only slightly below the rising support line and provides another layer of defence for the bulls.

Q1 U.S. real GDP was revised upward from 1.3% to 2% on Jun. 29, and the Atlanta Fed expects Q2 real GDP to come in at 1.9% (updated on Jul. 3). U.S. economic growth remains resilient, and the fundamental strength gives the Fed more leeway to raise interest rates. As a result, continued hawkish policy should be bullish for the currency pair.

Could the USD/CAD retest its recent highs near 1.365, or will a breakdown below 1.305 be the next major move?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.