The G20 summit took place in Bali, Indonesia, on November 2022…
USD/CAD: ahead of US jobless data and Powell’s speech
Information is not investment advice
Technical analysis
USD/CAD pulled back from the support of 1.2665. However, after a short jump the pair is likely to start falling again as both short- and long-term trends are downward. If the loonie manages to break through the support of 1.2665, the way down to the low of January 6 at 1.2650 will be clear. The resistance is at the upper trendline of 1.2700. The pair isn’t likely to cross it on the first try, but if it jumps above it, the way up to the 200-hour moving average of 1.2715 will be clear.
Important news to follow
1. The US unemployment claims will be out at 15:30 MT time and will impact significantly the pair. Analysts forecasted 785 000. If the US data is better than expected, USD/CAD will rise. Otherwise – drop.
2. Elsewhere, Fed’s head Jerome Powell will hold a meeting at 19:30 MT time, where he would share economic forecast. This event should grab greater attention than it does usually as there has been some considerable talk from the Fedaround cutting the current pace of bond purchases. Analysts consider that the most probable outcome of this is an increase of the US Treasury yield which should drive the USD further up in the near term.
Overall, technical indicators in combination with fundamentals point to the further falling of USD/CAD.
Similar
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Popular
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus