The late-February breakdown may be losing some steam as the multi-week decline probes trend support. Here are the levels that matter on the XAU/USD technical charts.
USD/CAD Recovery Unravels Amid Failure to Hold Above 50-Day SMA
2021-03-03 16:00:00
David Song,
Strategist
Canadian Dollar Talking Points
USD/CAD struggles to retain the advance from the February low (1.2468) as Federal Reserve officials show little interest in adjusting the path for monetary policy, and the exchange rate may continue to pullback from the 50-Day SMA (1.2718) as it extends the series of lower highs and lows from earlier this week.
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USD/CAD Recovery Unravels Amid Failure to Hold Above 50-Day SMA
USD/CAD trades to a fresh weekly low (1.2593) ahead of the US Non-Farm Payrolls (NFP) report, and it remains to be seen if the updated figures will influence the exchange rate as Fed Governor Lael Brainard, a permanent voting member on the Federal Open Market Committee (FOMC), insists that the central bank will “not tighten monetary policy solely in response to a strong labor market.”
February 26, 2021 - Written by Tim Boyer
The Pound’s strong streak may have come to an end for now as investors took profit from the British currency’s bullish February, and the British Pound to Swiss Franc (GBP/CHF) exchange rate has been tumbling from its best levels on new demand for the Swiss Franc as well. The Swiss Franc is a safe haven currency which is often appealing in times of global market uncertainty, so it is benefitting from this week’s bonds rout.
After opening this week at the level of 1.2561, GBP/CHF spent most of the week trending with an upside bias. In the middle of the week, GBP/CHF was surging and touched on a high of 1.2877 - the best level for the pair in over a year.
GBP/USD: The #1 most important factor powering cable’s relentless rally
The tightening spread between UK and US short-term bonds makes GBP/USD more attractive to global investors Share:
Through a global pandemic, Brexit, US political upheaval, and countless other storylines, there has been one constant in the FX market over the past 6-12 months: A relentless bid for GBP/USD.
After bottoming near 1.1500 as COVID fears peaked last March, the world’s third most-traded currency pair has rallied over 2,600 pips in the past 11 months to crack the 1.4100 handle this week.
What is driving the big rally in GBP/USD?
EUR/USD extends the series of higher highs and lows from the monthly low (1.1952), with the exchange rate breaking out of the descending channel from earlier this year.