Canada

USD/CAD put in a strong breakout last week and price ran to a key zone of resistance. The question now is whether bulls can continue to drive and US and Canadian employment numbers are on the calendar for this Friday.

Tiff Macklem kept the door open for more rate hikes out of Canada last week, and tomorrow brings inflation data ahead of next week’s Bank of Canada rate decision.

The bullish move in USD/CAD has been pronounced after the pair bottomed in July, but now the question of topping starts to come in as a major resistance level has come back into the picture.

The Bank of Canada (BOC) are expected to hold rates at today’s meeting, given GDP unexpectedly contracted in Q2. Still, implied volatility has spiked higher for USD/CAD. Perhaps the BOC pause will not be as dovish as expected, Fed members tout a hold or the rise of bond yields (and therefore the US dollar) lose steam. If so, USD/CAD may be better for short bets beneath the April highs.

USD/CAD has been one of the stronger major pairs during the recent theme of US Dollar strength and after setting another fresh two-month-high this morning, the pair appears to be setting the stage for a pullback. Bulls have fiercely defended 1.3500 since the break – can they continue to hold the big figure?

The US Dollar has been in a strong bullish move over the past month but that’s been expressed well in USD/CAD, where USD strength has been matched with CAD weakness. USD/CAD tested a fresh two-month-high this morning while testing above a key psychological level at 1.3500. Can bulls hold the trend with higher low support at prior resistance?

USD/CAD extended a bullish breakout this week while starting re-test of the 1.3500 psychological level. Bulls held the move despite US CPI coming in below expectations and CAD/JPY retains breakout potential given an ascending triangle formation. EUR/CAD on the other hand may offer some pullback potential given a hold at a key Fibonacci level of resistance.

USD/CAD snapped back aggressively on Friday, bringing to question a recovery move ahead of the Bank of Canada rate decision scheduled for this Wednesday.

As with any central bank, when the Bank of Canada (BOC) changes interest rates, it can have a knock-on effect to stocks, indices and currencies. Find out everything you need to know about the BOC and how it’s decisions impact financial markets.

Last Friday was also a good surprise on the jobs front for Canada as 289,600 jobs were added in May.

The Bank of Canada has kept its benchmark rate unchanged at 0.25% as expected.

Canadian Trade Balance will be published later today.

Three big events, three big chances for volatility in USD/CAD tomorrow.

The market seems to have taken the rate cut as “catching up” to other central banks.

With the ammo the Bank of Canada still has left, usd/cad can run up to 1.4682.

The value of the entire Canadian economy has fallen by more than 10% against Japan’s in a little over two weeks