Roger W. Cobbs
Stocks Forex Investments
The cost of comfort for Canada and the USA is looking for help, from Central Banks with both countries raising interest rates to counter staggering inflation. Federal Chairman Powell downgraded GDP for 2022 from 4% to 2%, fed announced 6 more rate increases for the remainder of 2022. Canda inflation continues to rise for the month of February, and monetary policymakers counter by raising interest rates with a goal of 2% inflation by end of 2022, February inflation rate 5.7% for Canada, USA inflation rate was staggering 7.5%, Federal target 4.3% inflation rate by end of 2022 for the USA.
CAD Inflation Chart
USA exports rose to 152.7 in February compared to 148.2 in January, agricultural exports rose 3 percent, cotton, soybeans, corn saw an increase in prices. Canda exports keep increasing to 138.3, both countries are showing strength not much weakness.
Currency battle
USD/CAD, both pairs give and take it back, with strong trends in a ranged battle. Strength to weakness, when one pair vs another has strength over weakness, parabolic moves can happen, but when both pairs economy are thriving, we can have a nice range. Chart below, showing daily time frame with a nice range price from 1.29 to 1.22 from August of 2021 to 2022, For month of March USD/CAD has been bearish with any rally, base, drop set ups waiting for trigger to short.
Chart below, red line is USD, torques is Canada, these two lines showing, which pair has strength compared to weakness. when either USD or Cad, reaches low of 34.000 we get a bounce, which should be expected since both pairs have shown strength in a thriving economy, also when strength levels 76.000, strength cools and Cad starts bullish upward moves. These movements can be seen since August of 2021 in daily chart.
Last week, USD/CAD was bearish, I'm looking for bullish moves for USD/CAD for this coming week of March 22. 2022 Buy zones areas 1.2570 to o opening weekly price, 1.2603 area.
Stocks Forex Investments is not a financial adviser nor a CPA. The trading calls are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. Stocks Forex Investments is merely sharing its analysts' opinion with no guarantee of gains or losses on investments.
Recommended Content
Editors’ Picks
EUR/USD weakens below 1.0900 on trade tensions
The EUR/USD pair loses ground to around 1.0880 during the Asian trading hours on Thursday. The escalating trade tension between the United States and the European Union exerts some selling pressure on the Euro against the Greenback.
Gold price retains positive bias for the third straight day; remains close to all-time peak
Gold price attracts buyers for the third successive day and climbs to the $2,947 region during the Asian session on Thursday, back closer to the all-time peak touched on February 24.
GBP/USD maintains position above 1.2950 near four-month highs
GBP/USD attempts to extend its gains for the third successive day, trading around 1.2960 during the Asian session on Thursday. The GBP/USD pair rises as the US Dollar faces headwinds amid ongoing tariff uncertainty from Trump and growing concerns over a potential US recession.
Ethereum: Staking could be catalyst to drive ETH's price 'more than Pectra upgrade': K33 Research
Ethereum traded around $1,860 in the Asian session on Thursday as its price remained largely subdued by bearish sentiment weighing on the general crypto market.
Brexit revisited: Why closer UK-EU ties won’t lessen Britain’s squeezed public finances
The UK government desperately needs higher economic growth as it grapples with spending cuts and potential tax rises later this year. A reset of UK-EU economic ties would help, and sweeping changes are becoming more likely.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.