The G20 summit took place in Bali, Indonesia, on November 2022…
USD/CAD: best pair to trade this Friday
Information is not investment advice
So many factors have recently appeared on the market which should definitely impact USD/CAD. First of all, the important economic releases will be out soon from both Canada and the USA. The Canadian labor data in combination with the US NFP report will be published at 15:30 MT time. No doubt that the main driver of the pair will be NFP, but take into consideration the Canadian data as well.
Elsewhere, OPEC+ decision to prolong oil output cuts moved oil prices upwards. As a result, the resurgence of crude oil impacted positively the commodity-sensitive loonie as Canada is one of the world’s largest oil exporters.
The pair is trading in a downtrend, and the moving averages moving in descending order just confirm it. Looking at the last candlesticks, we may notice a lot of indecision. The price is stuck between 1.2850 and 1.2875. However, it’s just the calm before the storm. Upcoming economic reports will shake this pair definitely. The positive Canadian data and the negative US data will drive the pair down. Otherwise – up. If USD/CAD jumps above the top of this range, it may surge to the key psychological mark of 1.2900. Support levels are at 1.2850 and 1.2820. Follow the releases and catch the market flow!
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.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.