G20: what did the leaders decide?
The G20 summit took place in Bali, Indonesia, on November 2022…
USD/CAD: Canadian positive data vs US negative data
Information is not investment advice
The Canadian employment change has been released at the same time with the US PPI. The best opportunity of this week for traders!
What happened?
- 952 900 Canadians have been hired during June. Analysts expected that only 700 000 people would find jobs. This data gave a good sign that the Canadian labor market is gradually recovering. In comparison, the previous report showed that 289 600 people were employed during May. However, the Canadian unemployment rate came worse than expected: 12.3%, that was more by 0.3% than the forecast.
- Two types of Producer Price Indexes (PPI) were released: the Core PPI and the PPI. The Core PPI shows the change in the price of finished goods and services sold by producers, excluding food and energy. Unlike it, the PPI includes food and energy. Both of them turned out worse than analysts anticipated. The results you can see below.
Actual Forecast Previous
Core PPI -0.3% 0.1 -0.1%
PPI -0.2% 0.4% 0.4%
How to trade USD/CAD?
Opportunities like this come along quite rarely. The Canadian dollar got two tailwinds at the same time. As a result, USD/CAD started moving down. Based on fundamental factors we can assume that the pair should go down further. It has already broken through two moving averages, but there is one left – the 50-period moving average at 1.3570. If the price crosses it, it may plummet to the next support level at 1.3525, which it has touched several times already. The move below this level will push the price to the low of June 9 at 1.3375. Resistance levels are at 1.3610 and 1.3685.
Similar
The End of Era: What Might the UK Face Next?
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
Why didn't oil prices calm despite OPEC+ attempts?
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Popular
Best Instruments to Trade This Week
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
European Currencies Ahead of the Banks' Statements
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.
Will the FOMC Surprise the Markets?
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.
Choose your payment system
