A Dovish Fed Sends The US Dollar Lower And Stocks Higher

USD/CAD

The Bank of Canada was the first major central bank to announce the tapering of the asset purchases it started during the pandemic. Like it or not, the market needs to prepare for other central banks to follow the same path sooner rather than later (providing the pandemic is defeated).

It is worth looking at the USD/CAD chart, which is in a strong bearish trend, falling from 1.46 in March 2020 to the current 1.23. Only a move above the falling trendline may signal a reversal.

Copper

Copper struggled at the $4,000 level but only to form a continuation pattern. The market broke out of a pennant formation, and the $4,000 level turned into strong support given by the triangle’s apex.

Winners and Losers

Commodities continue to trade bid across the board, especially raw materials, while investors keep selling the dollar.

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Disclaimer: None of the content in this article should be viewed as investment advice or a recommendation to buy or sell. Past performance/statistics may not necessarily reflect future ...

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