Trading USD on Fed comments, CAD strength continuing [Video]

Even in a month-long run of USD weakness, we saw a reversal in most pairs after comments by Robert Kaplan which seemed to go against the comments of Federal Reserve chairman Jerome Powell who doesn’t want to do anything until he sees the pandemic under control.

Kaplan talks about tapering the US government’s bond-buying plans, or quantitative easing, which would inject less cash into the market thereby strengthening USD.

This may also indicate an Interest Rate rise earlier than expected.

So, this week, the markets will be paying close attention to Jerome Powell’s speech tonight, a US Manufacturing PMI today and a Non-Manufacturing PMI and ADP Employment figures Wednesday and, of course, the US Non-Farm Payrolls Friday so watch for market volatility and some great opportunities.

Also, we will see Interest Rate decisions from Australia tomorrow and the UK Thursday, and employment data from New Zealand Wednesday and from Canada Friday.

One of the key events this week will be a speech by the governor of the Bank of Canada.

Many analysts feel that the Bank of Canada is the only central bank in the world to call it correctly with stimulus ending sooner and Interest Rates going up sooner.

We can see from the charts on all CAD pairs that the Canadian Dollar is seriously stronger.

Tomorrow we will take a look at CAD from the technical perspective.