USD or CAD: Who's showing more strength?

Trading Discussion Currencies
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Despite strong employment numbers last week, the BOC left rates unchanged as they await to assess the impact the Omicron variant may have. The central bank is only scheduled to meet again in late January, where they may announce their decision on a rate hike depending on the state of the economy.

Recent strength for the US Dollar saw USD/CAD rally back up to its September highs, but a recovery in oil prices has helped the Canadian currency make up some of the ground. The pair has managed to hold support at 1.26 leading up to US CPI data coming out tomorrow.

USD/CAD currently has the potential to move in either direction. Its future will depend on the economic data coming out of each country over the next few weeks, and how each central bank chooses to react.

Click the following link for an in-depth analysis of the currency pair and its technical levels:

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Fair enough.

I am already long USD/CAD since the start of today’s trading but not long oil yet - I have a buy order pending for oil if the price continues to rise. If it does, fine, if not I’ll probably be out of USD/CAD before the weekend and the oil buy order will be cancelled.

Interesting times.

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Surely you meant short on USDCAD or short Oil, otherwise these two trades are contradictory.

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They are contradictory and I did mean long on both. Its not me, blame the charts.

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That’s funny, I also have a long trade running on USDCAD and a short order on Oil that did not get picked up overnight.

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Hi Tommor
I’m looking at oil and can’t see why you would go long. 20/50 EMA have crossed and are pointing down.

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This is an interesting take. As the article mentions, USD/CAD and Crude Oil currently have a strong negative correlation, and “crude oil looks vulnerable to lower prices” according to one of our senior analysts earlier today.

Although it is tricky with all the omicron headlines, and of course anything can happen. Would love to hear more about what you see on the charts!

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I’m happy with the USD/CAD long but on oil I start to think I screwed up. I think I was trying to be too clever. which is usually a red flag for me…

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I’m delighted with my long USD/CAD position.

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Guess that usd will always show more strength. All the currencies which aren’t considered to be the major ones, I remind you that there are only four of such ones: jpy, gbp, eur and usd, obey to one of them. Cad obeys usd and this is a fact which should be admitted by the world community. Of course it doesn’t express itsefl as the direct submission to usd, nevertheless it indirectly does it. If you will notice the behavior of cad and then look at the behavior of usd, you will notice that they’re similar. Everything because of the power of usd. I believe it will continue in future too.