EUR/USD 1.17685
-0.115%
Gold 4854.42
1.329%
Oil 82.946
-7.452%
USD/JPY 158.556
-0.368%
GBP/USD 1.35187
-0.057%
GBP/JPY 214.355
-0.412%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Market news: Serbian oil company NIS has been granted another exemption by the United States.On April 18, the U.S. Department of Energys Strategic Petroleum Reserve Program Management Office announced on its website that it would lend more than 26 million barrels of crude oil from the Strategic Petroleum Reserve to nine oil companies. This is the third batch of oil reserves released by the Trump administration to stabilize oil prices since the start of the Iraq War on February 28.On April 18th, ahead of tense trade negotiations, U.S. Commerce Secretary Rutnick fiercely criticized Canada, calling the USMCA a "bad deal" that needs to be revised. Rutnick stated that President Trump believes the USMCA "needs to be reconsidered and properly reimagined" when new negotiations begin in July. Rutnick said reports that Canada is delaying trade negotiations with the U.S. are "the worst tactic Ive ever heard of. Its absolutely terrible." Trump signed the 2020 trade agreement during his first term to replace NAFTA.Five Iranian oil tankers attempted to circumvent a U.S. blockade by concealing their navigation data. A U.S. destroyer forced three Iranian tankers to return to port and is pursuing the remaining two.On April 18th, two State Council decrees were issued in quick succession over the past two weeks: Decree No. 834 promulgated the "Regulations of the State Council on the Security of Industrial and Supply Chains," and Decree No. 835 promulgated the "Regulations of the Peoples Republic of China on Combating Undue Extraterritorial Jurisdiction by Foreign Countries." These two administrative regulations share a strong commonality in content, both clearly targeting improper foreign conduct. An official from the Ministry of Justices Bureau of Foreign-Related Legal Affairs stated that the "15th Five-Year Plan" explicitly points out the need to accelerate the construction of a legal system and capacity for foreign-related affairs. It is imperative to strengthen the rule of law mindset, utilize legal methods, effectively address challenges and prevent risks, and comprehensively employ legislative, law enforcement, and judicial means to resolutely safeguard national sovereignty, dignity, and core interests. This means that in dealing with complex international struggles, legal means will be given a more prominent position. These two new regulations already embody this spirit.

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