USD / CAD – Canadian Dollar Grinding Out Gains

– Canada closed Monday

– China stimulus improves risk sentiment

– US dollar retreating

USDCAD Snapshot: open 1.2779-83, overnight range 1.278-1.2833, previous close 1.2823, WTI open $112.00, Gold open $1,846.73

The Canadian dollar is trading at the top of this week’s range, garnering support from broad-based US dollar weakness.

USDCAD topped out at 1.2980 in Asia on Monday morning and has made three attempts to crack below support at 1.2770 since Wednesday.

Hotter than expected domestic inflation, surging crude oil prices, and rebounding global equity markets from this week’s lows have fueled USDCAD losses.

The global market risk sentiment improved dramatically overnight when the Peoples Bank of China cut its 5-year Loan Prime Rate (LPR) by 0.15 bps to 4.45% from 4.60%. It left the 1 year LPR unchanged at 3.70%. Chinese equity traders were happy. The Shanghai Shenzhen CSI 300 rose 1.95% to 4,077.60

The news gave commodity prices … Read more

S&P Flat After Slipping Briefly into Bear Market

Rising recession fears pushed U.S. stocks briefly into a bear market on Friday with the S&P 500’s decline from its all-time high in January reaching 20% at one point. A dramatic late-day reversal pushed the S&P 500 slightly into the green at the closing bell.

The 30-stock index lifted itself out of the hole and gained 8.77 points Friday to close the week at 31,261.90.

The broader market poked ahead 0.57 points to 3,901.36. At the day’s lows, the S&P 500 was 20.9% below its intraday high in January. The index closed about 19% below its record.

There’s no official bear market designation on Wall Street. Some will count Friday’s decline at the intraday lows as confirmation of a bear market, whereas some strategists may say it’s not official until it closes 20% off its high.

Regardless, it’s the biggest downturn of this magnitude since the rapid bear market in … Read more