USDCAD Analysis
USDCAD price is standing exactly at the higher low of the uptrend line and the new support level in the 4-hour timeframe chart.
After confirmaiton of uptrend movement, USDCAD buy signal given.
USDCAD consolidates for few hours and then finally reached the take profit target successfully.
US Dollar: US Dollar at risk due to lower interest rates
US Dollar loses its gains as Lael Brainard, and US FED Governor said she looks economy more dovish than expected soon hawkish tone will return.
And FED Powell told US Economy shows stability reports, but US 10-year treasury yield is still at the 1.50% level.
Powell also commented that they did not concern about borrowing at lower costs by Businesses and House Holds at this time.
If risky assets started to decline by huge price, it would affect the whole economy as core like China Evergrande case.
Now PBOC offered more liquidity to help China and Hong Kong at this time.
And US Dollar is at risk since borrowing cost is significantly lower; due to this, we have to be concerned about riskier assets.
Canadian Dollar: BoC expected to do rate hikes in next year
National bank of Canada forecasted USDCAD to downside target of 1.20 area in 2022 end.
And Bank of Canada will soon do rate hikes in April 2022 before the expected July 2022 because of narrowing spreads between 2year bond yields of Canada and the US.
And also, Domestic performing very well at Canada and Oil prices are more support for the Canadian Dollar.
Bank of Canada Governor Tiff Macklem also said earlier; Rate hikes will be done next year at mid-level or end level as per Economy works and inflation rates.
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