EUR/USD 1.15411
-0.100%
Gold 4268.99
0.524%
Oil 75.219
1.225%
USD/JPY 157.891
0.084%
GBP/USD 1.34765
0.071%
GBP/JPY 212.787
0.158%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The US June wholesale sales month-on-month rate and the July global supply chain stress index will be released in ten minutes.The Dow Jones Industrial Average opened 129.94 points higher, or 0.24%, at 54,479.06 on Thursday, August 6; the S&P 500 opened 3.34 points higher, or 0.04%, at 7,726.76; and the Nasdaq Composite opened 103.47 points lower, or 0.39%, at 26,259.97.According to reports from Al Arabiya TV and Saudi media Hadas, Iraqi security sources said that various Iraqi armed factions have redeployed to the front lines due to concerns about an escalation of the security situation.Bank of America raised its winter TTF natural gas price forecast for Europe to €65/MWh due to low physical gas inventories in Europe.August 6th - The number of Americans filing for unemployment benefits rose slightly last week, while corporate layoffs in July fell to their lowest level in two years, indicating that the US job market remains stable. Data released on Thursday showed that seasonally adjusted initial jobless claims rose by 1,000 to 199,000 in the week ending August 1st, lower than the market expectation of 202,000. Initial jobless claims have declined significantly since a sharp surge in early June. However, some of the decline may reflect the difficulty in adjusting for seasonal factors during the summer. Despite the oil price shock caused by the US-Israel conflict with Iran, corporate layoffs have remained extremely low. Furthermore, there are currently no signs that the construction of artificial intelligence infrastructure is causing large-scale unemployment; layoffs are mainly concentrated in the technology sector.

As investors wait for US/Canada employment data, the USD/CAD trading range is limited to 40 pips

Daniel Rogers

Apr 06, 2023 13:36

 USD:CAD.png

 

The USD/CAD pair retraced below 1.3450 in the early Asian session as the US Dollar Index (DXY) lost upside momentum after reaching the key resistance level of 102.00. As investors anticipate the release of the United States/Canada Employment data, the Canadian dollar is expected to deliver a dazzling performance.

 

As a consequence of a decline in Job Openings and sluggish additions of new positions, as measured by Automatic Data Processing, firms have slackened recruitment efforts, thereby alleviating the tight US labor market. (ADP). This has led to expectations that the Federal Reserve (Fed) will keep interest rates unchanged at its May meeting.

 

In the interim, S&P500 futures have resumed their downward trend, indicating a cautious market sentiment.

 

Employment data will influence the Canadian Dollar. The consensus estimate for Net Change in Employment is 12K, which is a decrease from the previous release of 21.8K. The estimated unemployment rate is 5.1%, up from 5.0% previously.

 

The USD/CAD exchange rate is exhibiting an Inverted Flag pattern on an hourly time frame. The Inverted Flag is a trend-following pattern that consists of a protracted consolidation followed by a decline. Participants prefer to enter an auction after a bearish bias has been established, and current vendors increase their position size during the consolidation phase of a chart pattern.

 

The Canadian dollar was unable to maintain a position above the 50-period Exponential Moving Average (EMA) at 1.3458, indicating that further declines are imminent.

 

Meanwhile, the Relative Strength Index (RSI) (14) has an upper limit of 60.00. A violation of the unfavorable 20.00-40.00 range will trigger downward momentum.

 

A break below the low of April 04, 1.3406, would expose the asset to a fresh six-week low around 1.3350, the low of February 6 followed by round-number support at 1.3300.

 

In an alternative scenario, a move above the psychological resistance of 1.3500 would lend momentum to US Dollar supporters, propelling the asset toward the 31- and 29-March highs of 1.3559 and 1.3619, respectively.


Suggestion