EUR/USD 1.09070
-0.231%
Gold 2743.31
-0.018%
Oil 71.693
0.040%
USD/JPY 151.675
0.042%
GBP/USD 1.30196
-0.168%
GBP/JPY 197.476
-0.122%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On November 6, analysts at High Frequency Economics said that the Federal Reserve still has two meetings between the presidential election day and the inauguration day, but it is expected that it will be careful to avoid letting expectations of the White Houses future policies affect its interest rate decisions. The Federal Reserve can only set monetary conditions based on policies and budgets established by law or orders from the executive branch. In the fierce campaign, it cannot redefine policies based on rapidly changing promises. Even if the intentions of the winning candidate may become clearer by December, these will still need to be implemented through congressional legislation or executive orders.On November 6, Citi analyst Jabaz Matai said that at the current market odds, it is attractive to bet that the Federal Reserve will not cut interest rates again in December. The market generally expects the Federal Reserve to cut interest rates by 25 basis points this week, but given a series of strong economic data recently, this may be the last rate cut by the Federal Reserve this year. His latest report recommends a swap transaction, in which traders agree to pay a fixed annualized interest rate of 4.404% and receive interest that floats with the Federal Reserves target rate. If the Federal Reserve does not cut interest rates in December and keeps interest rates between 4.5% and 4.75% by the end of the year, this transaction will pay off.Tip: The Associated Press said Trump won Indiana and Kentucky in the election, and Harris won Vermont. The results were in line with the general media predictions.Minutes of the Bank of Japans September meeting: One member said the policy rate could reach 1% in the second half of fiscal 2025.According to the Associated Press: Harris wins Vermont.

USD/CAD Faces Downward Pressure Following the BoC's Hawkish Decision

Drake Hampton

Apr 15, 2022 10:39

USD/CAD fell in response to the Bank of Canada's decision. Benchmark yields increased further as investors digested rising inflation and hoped for a peak. Gold and silver prices continue to act as a hedge against inflation in the face of mounting inflation fears.

 

Oil prices fell as supply issues remained unresolved. While global supply is tightening in anticipation of a possible Russian oil shutdown, the EIA announced last week the proposal for member states to release strategic reserves.

 

Retail sales in the United States climbed by 0.5 percent in March, and 6.9 percent year over year. Gas station revenues increased the most, as retail sales are not inflation-adjusted. This compares to a 6.4 percent decline in internet sales.

 

Initial jobless claims increased to 185,000, up 18,000 from the previous week. Despite the fact that export prices climbed faster than import prices, the US trade imbalance widened. Imports have been impacted by inflation, with prices increasing by 2.6 percent and 12.6 percent month over month.

Technical Evaluation

The USD/CAD exchange rate has remained relatively stable as investors await critical US data that would affect the dollar. The Bank of Canada's hawkish tone bolstered the Loonie and contained losses, while lower crude oil prices weakened the Loonie and limited gains.

 

Resistance is located near the 1.266 50-day moving average. Support is located near the 1.256 ten-day moving average. The short-term momentum shifted to the upside when the fast stochastic crossed above the buy signal. The medium-term momentum is bullish, since the MACD line generated a buy signal upon crossover.

 

When the MACD line (the 12-day moving average minus the 26-day moving average) passes the MACD signal line, this scenario occurs (the 9-day MA of the MACD line).

 

image.png 

Suggestion