Thursday, 28 October 2021 12:13 GMT

USD/CAD - Canadian Dollar Looking for Direction


(MENAFN- Baystreet.ca) USD/CAD - Canadian Dollar Looking for Direction


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The Canadian dollar is rangebound and trading with a negative bias. USD/CAD is bouncing between its September 15 low of $1.2620 and its September 20 peak of $1.2895 as prices rise and fall at the whim of global risk sentiment.
Canadian economic data is not a factor.
Canadian Retail Sales posted a modestly better than expected result yesterday. July Retail Sales fell 0.6% m/m compared to the forecast for a decline of 1.2%, but the news did not impact the currency.
The Canadian dollar drifted lower alongside falling AUD/USD and NZD/USD prices due to lingering concerns about rising US interest rates sooner than expected.
Prices are also under pressure to ongoing concerns about China's Evergrande Group.
U.S. Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde said the risks to their respective economies if Evergrande went bankrupt were minimal, saying it was mostly a domestic Chinese issue. Nevertheless, traders were a tad concerned after Evergrande failed to make a U.S. dollar coupon payment yesterday, even though it negotiated a 30-day grace period.
Asia markets closed mixed despite Wall Street's positive close. Japan's Nikkei 225 index gained 2.06%, but Hong Kong's Hang Seng Index fell 1.30%. European bourses are trading flat to lower, with the Garman Dax losing 0.69% at 8:00 am ET. Wall Street is poised to open in negative territory as S&P and DJIA futures are down.
U.S. Treasury yields are getting a lot of attention after rising from 1.334% yesterday to 1.446 in Asia overnight. The rally is due to the prospect for higher U.S. interest rates and the unwind of some safe-haven trades.
USD/JPY traders took note of the Treasury yield rally, and prices climbed to 110.56 from 109.73 on Thursday.
EUR/USD remains under pressure and is trading at the bottom of its overnight $1.1714-1.1747 range. Dovish comments from Lagarde reiterated that inflation gains were temporary is weighing on prices.
GBP/USD is tracking EURUSD lower, falling from $1.3735 to $1.3674 due to fears rising U.K. gas prices will trigger an economic slowdown and delay a possible Bank of England rate hike.
The U.S. and Canadian economic calendars are empty. Fed Chair Powell and Vice Chair Clarida will be speaking at the "Fed Listens" virtual event at 10:00 a.m. today.
Rahim Madhavji is the President of KnightsbridgeFX.com, a Canadian currency exchange that provides better rates than the banks to Canadians







Learn how KnightsbridgeFX can help you save up to 2% when buying or selling US dollars compared to your Canadian bank's rates – click here to compare bank rates




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