Each participant’s bias is calculated automatically based on the week’s close price and recent volatility. Drawing from those results, this chart calculates the distribution of bullish, bearish, and sideways forecast prices from all participants, informing about sentiment extremes, as well levels of indecision reflected in the number of “sideways”. Canada is commonly known as a resource-based economy being a large producer and supplier of oil. The leading export market for Canada is by far the United States making its currency particularly sensitive to US consumption data and economical health. Bouts of volatility (or extreme flat volatility) can be then compared to the typical outcome expressed through the averages.
Key data points
It is measured among others by the CPI (Core Price Index) and the PPI (Production Price Index). By displaying three central tendency measures (mean, median, and mode), you can know if the average forecast is being skewed by any outlier coinmama exchange review among the poll participants.
U.S. Dollar / Canadian Dollar – USD/CAD
The benchmark 10-year US Treasury bond yield stays in negative territory below 3.7% as markets reassess the odds of a large Fed rate cut, helping XAU/USD hold its ground. USD/JPY remains under some selling pressure on Friday and hits a fresh YTD low. The divergent Fed-BoJ policy expectations continue to weigh heavily on the pair. Investors look to Fed and BoJ meetings next week for a fresh directional impetus. Inflation is another economic value that is important for the USD/CAD pair.
- Together with the close price, this chart displays the minimum and maximum forecast prices collected among individual participants.
- Bouts of volatility (or extreme flat volatility) can be then compared to the typical outcome expressed through the averages.
- Rising Fed large rate cut prospects improve the appeal of risk-sensitive assets.
- USD/CAD trades in a tight range even though the US Dollar slides further.
Bitcoin Weekly Forecast: On the road to $60,000
In this chart, the close price is shifted behind so it corresponds to the date when the price for that week was forecasted. This enables the comparison between the average forecast price and the effective close price. The USD/CAD tells the trader how many Canadian dollars (the quote currency) are needed to purchase one U.S. dollar (the base currency). This currency pair is known as the “Loonie”, a nickname derived from the picture of a loon, a distinctive bird which appears on one side of Canada’s gold-coloured, one Dollar coin. The European Central Bank is expected to cut key rates by 25 bps at the September policy meeting.
WTI consolidates its recovery gains registered over the past two days amid mixed cues. Concerns about slowing demand in China and the US cap the upside for Crude Oil prices. Dovish Fed-inspired broad-based USD weakness offers support and helps limit losses. Gold trades slightly below $2,570 after setting a new record-high of $2,573 earlier in the day.
In terms of economic data, we should highlight the Trade Account Balance, a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. If a steady demand in exchange for CAD exports is seen, that would turn into a positive growth in the trade balance, and that should be positive for the CAD. Together with the close price, this chart displays the minimum and maximum forecast prices collected among individual participants. The result is a price corridor, usually enveloping the weekly close price from above and below, and serves as a measure of volatility.
ECB President Christine Lagarde’s presser and updated economic forecasts will be closely scrutinized for fresh policy cues. The Canadian economy is expected to run into headwinds through the second half of 2024, coinciding with a global growth slowdown that could hamper Crude Oil prices next year as fossil fuels demand flounders in low-growth or recessionary environments. USD/CAD trades in a tight range even though the US Dollar slides further. Rising Fed large rate cut prospects improve the appeal of risk-sensitive assets. The USD/CAD pair tells the trader how many Canadian dollars (the quote currency) are needed to purchase one U.S. dollar (the base currency). This currency pair is also known as the “Loonie”, a nickname derived from the picture of a loon, a mercatox review distinctive bird which appears on one side of the Canada’s gold-colored, one Dollar coin.
European Central Bank widely expected to cut interest rates in September
It is measured among others by the CPI (Consumer Price Index) and the PPI (Production Price Index). They are key indicators to measure inflation and changes in purchasing trends. The USD/CAD is one of the three so-called “commodity pairs”, together with AUD/USD, NZD/USD, highly correlated to commodity (especially oil) fluctuations.
