Swing Trades: USDCAD, AUDUSD

Dukascopy Bank Team Dukascopy Bank SA

USD/CAD: BoC Interest Rate Decision

The Canadian Dollar revelaed a 1.26% volatility against the US Dollar, following the BoC monetary policy decision. Though, the USD/CAD currency pair fell just 0.02%, remaining in the bearish trend.

The Bank of Canada implemented an interest rate hike on Wednesday, in line with expectations, as employment growth and solid inflation outweighed NAFTA uncertainties, though the Central Bank’s Chief admitted that the change was not an easy decision. The rate increase acknowledges that recent economic data was stronger that the BoC anticipated, inflation was nearing 2% goal, and the economy was operating at its full potential without output gap. The Bank also stated that trade uncertainty is likely to cut investment by 2% by the 2019 end.

AUD/USD: Australian Unemployment Rate

The Aussie fell against the Grenback on the weaker-than-anticipated report on the Australian labour market report. The AUD/USD exchange rate declined 0.22% or 17 base points to the 0.7953 mark, but managed to return into the 0.7970 area.

The Australian Bureau of Statistics stated that the country’s jobless rate was registered at a seasonally adjusted 5.5% in December, which was above expectations for November’s unchanged 5.4%. The report additionally showed that the Australia’s economy added 34.7K positions in the reported month, beating forecasts for a 15.1K gain. More Australians were looking for work, while employees are actively hiring, the reason why the consumer confidence reached the four-year high.

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Dukascopy Bank SA

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EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.