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European Central Bank President Christine Lagarde: The legislative process for a digital euro should be completed by the end of 2026.May 8th - Wells Fargo economists stated that the U.S. labor market remains in a state of low employment and low hiring that has persisted for the past two years. With little change in demand for labor, labor supply has become the more significant factor determining the pace of job growth. Last month, employment increased by 178,000, but even considering the approximately 30,000 additional jobs gained after the strikes ended, this figure is unsustainable because factors such as immigration and demographics limit labor force growth. We expect total employment to increase by 70,000 in April, with 75,000 of those increases in the private sector.According to preliminary statistics from the China Passenger Car Association (CPCA), from April 1st to 30th, the national passenger car market retail sales reached 1.406 million units, a 20% decrease year-on-year and a 15% decrease month-on-month. Year-to-date, cumulative retail sales reached 5.628 million units, a 18% decrease year-on-year. From April 1st to 30th, national passenger car manufacturers wholesaled 2.13 million units, a 3% decrease year-on-year and a 10% decrease month-on-month. Year-to-date, cumulative wholesale sales reached 7.997 million units, a 6% decrease year-on-year. From April 1st to 30th, the national new energy passenger car market retail sales reached 883,000 units, a 5% decrease year-on-year and a 4% increase month-on-month. Year-to-date, cumulative retail sales reached 2.792 million units, a 17% decrease year-on-year. From April 1st to 30th, national passenger car manufacturers wholesaled 1.22 million new energy passenger cars, a 7% increase year-on-year and a 7% increase month-on-month. Year-to-date, cumulative wholesale sales reached 3.949 million units, a 1% decrease year-on-year.According to the Kuwait News Agency, the average price of crude oil sold in Kuwait fell by $6.35 per barrel to $114.12 per barrel.On May 8, Foreign Ministry Spokesperson Lin Jian held a regular press conference. A reporter asked about reports that the EU is pushing forward with a "cybersecurity law" that would ban Chinese companies from participating in the construction of critical European infrastructure. In response, Lin Jian stated that recently, Chinas relevant authorities submitted assessment opinions to the EU regarding the proposed amendments to the EUs "cybersecurity law," expressing Chinas serious concerns and political stance, and hoping the EU would take them seriously. China is closely monitoring the EUs relevant legislative developments and is willing to engage in dialogue and communication with the EU on this matter. China hopes the EU will view China-EU economic and trade relations comprehensively, objectively, and positively, abide by WTO rules and market principles, and cease practices that harm others without benefiting itself. If the EU insists on punishing or discriminating against Chinese companies, China will take resolute measures to safeguard the legitimate rights and interests of Chinese companies.

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.


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