Despite the negative news and worrying headlines, we recommend traders to make mental reframing of the situation. This way, you can look at the market from a different perspective. Let’s observe how you can take advantage of the uncertainties and make the fundamentals work for you!
USD/CAD: edging lower for the fourth day straight
Information is not investment advice
The pair fell down on the weak US dollar and the positive Canadian data. What is the forecast?
Yesterday the consumer price index came out better than expected. It rose by 0.8%, while the forecast was only 0.4%. USD/CAD slumped after the report to the 5-week low at 1.3400. At the same time, the weak US dollar added to the pair falling. In fact, the US dollar was waning on the risk-on sentiment, and it got an extra headwind from fears that democrats and republicans wouldn’t be able to agree on the fiscal stimulus package in a short time. In addition, the US existing home sales turned out worse than analysts expected. They rose by 4.72 million the last month, while the forecast was 4.77 million. Also, today the USA published jobless claims. Analysts expected that the numbers will stay at the same level as the previous time – 1.3 million. However, unemployment claims rose by 1.4 million and weighed on the US dollar.
The pair had been trading in a horizontal range between 1.3685 and 1.3500 during almost two weeks already. And, finally, USD/CAD escaped it, breaking down the 200-day moving average. As a rule, the price should fall by the same height as the range itself. The pair has already crossed the 1.3425 level and continues moving down. If the pair crosses the low of June 8 at 1.3380, it will plummet to the next support at 1.3320.
The US Federal Reserve may refrain from more aggressive interest rate hikes in March due to geopolitical risks after Russia's special operation in Ukraine…
Hello from the far 2022! FBS analysts have used some magic to travel to the future and brought you some hilarious predictions.
Last week brought a selloff in markets. Some assets reached the most crucial support levels and are likely to reverse in a short term. Be ahead of trends and make the most out of this week!
Historically, the stability of the franc is caused by the solid Swiss economy and a highly developed banking system…
A four-day lockdown turned out to be two months of complete isolation. Factories are frozen, supply chains are under heavy pressure, and the future is gloomy. Find out how to trade in times of crisis in this article!