- The Canadian dollar loses peso for third session against the US dollar.
- The loonie flows have changed direction in the midst of a general setback of the USD.
- Boc and Fed’s interest rates decisions are coming this week.
The Canadian dollar (CAD) cut more profits on Monday, marking the start of the new week of operations with a new decrease against the US dollar (USD). The Loonie has fallen almost 1.25% against the dollar since the peak last week, which reinforces the USD/CC torque above 1,3700 and takes a new impulse towards key technical averages.
The Bank of Canada (BOC) is expected to issue its last decision on interest rates in mid -week. However, the United States Federal Reserve (FED) also has its own decision of fees, which looms over the BOC and the statement of interest rates in competition are ready to take the Canadian dollar to unexpected volatility.
What moves the market today: interest rates, commercial agreements and sanctions to Russia weigh on currency markets
- The Canadian dollar lost more peso, falling against a US dollar in rapid ascent and sending the USD/cad torque to the recent recent above 1,3700.
- The president of the United States, Donald Trump, is struggling to ensure a desirable trade agreement with the Canadian government. Canadian Prime Minister Mark Carney is still sharp in which he has no interest in allowing Donald Trump Socave to its own USMCA agreement that already balances trade between Canada and the USA.
- The BOC is prepared for another rate of rates this week, together with the US Fed. It is expected that both central banks will maintain interest rates without changes, however, the statements of those responsible for policies have acquired a new importance.
- President Trump is also considering reducing the time before new Russian sanctions on specific products enter into force, since the Trump administration struggles to make Russia do what he wants in Ukraine.
- Crude oil markets saw an increase in volatility after Trump publicly reflected on reducing Russia’s deadline to resolve the war in Ukraine to less than two weeks from Monday. Donald Trump is considering potential sanctions to the Energy Market of Russia if Russian President Vladmir Putin does not do more to support the status Trump has long claimed as a critical global negotiator.
Prognosis of the price of the Canadian dollar
The action of the unilateral price of Monday behind the Canadian dollar and the US dollar sent the USD/CAD above 1,3700. The torque is now taking a new impulse towards the 50 -day exponential mobile average (EMA) about 1,3740.
Even if the bulls manage to boost the USD/CAD to new maximums of several months above 1,3800, the 200 -day EMA expects about 1,3900, which could limit the long -term profits if the US dollar reverses its recent trend and begins to rise again.
USD/CAD DAILY GRAPH
Dow Jones – Frequently Questions
The Dow Jones Industrial Avenge, one of the oldest stock market indexes in the world, consists of the 30 most negotiated values in the United States. The index is weighted by the price instead of capitalization. It is calculated by adding the prices of the values that compose it and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, also founder of the Wall Street Journal. In recent years it has been criticized for not being sufficiently representative, since it only follows 30 companies, unlike broader rates such as S&P 500.
There are many factors that promote the Dow Jones Industrial Average (DJIA) index. The main one is the added performance of the companies that compose it, revealed in the quarterly reports of business benefits. The American and world macroeconomic data also contribute, since they influence investor confidence. The level of interest rates, set by the Federal Reserve (FED), also influences the DJia, since it affects the cost of credit, on which many companies depend largely. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
Dow’s theory is a method to identify the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Avenge (DJIA) and the Dow Jones Transportation Average (DJTA) and just follow the trends in which both move in the same direction. The volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. Dow’s theory raises three phases of the trend: accumulation, when intelligent money begins to buy or sell; Public participation, when the general public joins the trend; and distribution, when intelligent money abandons the trend.
There are several ways to operate with the DJ. One of them is to use ETF that allow investors to negotiate the DJ as a single value, instead of having to buy shares of the 30 companies that compose it. An outstanding example is the SPDR Dow Jones Industrial Avenge ETF (day). Future contracts on the DJ allow the specular operators about the future value of the index and the options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Investment funds allow investors to buy a part of a diversified portfolio of DJ values, which provides exposure to global index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
