EUR/USD 1.16837
-0.057%
Gold 4535.24
0.255%
Oil 101.349
-0.980%
USD/JPY 157.255
0.001%
GBP/USD 1.35218
-0.066%
GBP/JPY 212.638
-0.052%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Futures News, May 5th - According to foreign media reports, Malaysian palm oil futures rose for the second consecutive trading day, supported by a weaker ringgit and market optimism regarding Malaysias biodiesel program. However, declines in crude oil and soybean oil prices limited further upside. On the Bursa Malaysia Derivatives Exchange (BMD), the benchmark palm oil contract for July delivery steadily rose in early trading. In the crude oil market, prices, which had previously surged sharply, retreated significantly due to signs of potential easing in the situation regarding the blockade of key Middle Eastern waterways. The weakening of crude oil futures prices directly reduced the attractiveness of palm oil as a substitute for biodiesel feedstock.On May 5th, it was reported that Apple (AAPL.O) has held exploratory discussions with Intel and Samsung Electronics regarding the production of main processors for its devices. According to sources familiar with the matter, Apple has held initial talks with Intel about using the companys chip manufacturing services. Meanwhile, Apple executives have also visited a Samsung advanced chip factory under construction in Texas. The sources indicated that neither effort has yet generated any orders, and the collaboration with these two suppliers remains in its very early stages. The sources added that Apple has concerns about using technology outside of TSMC and may ultimately not actually partner with other companies. Spokespeople for Apple, Intel, Samsung, and TSMC declined to comment.Israel Defense Forces: In two separate incidents over the past few hours, Hezbollah fired several mortar shells at areas where the IDF is operating in southern Lebanon. No IDF personnel have been reported injured.On May 5th, State Street Global Advisors strategists stated in a report that gold prices are likely to rise as long as market consensus and the Federal Reserves forward guidance point to future easing policies. Currency markets and forex traders may be awaiting a viable (US-Iran) peace agreement to re-pricing in Fed rate cuts. They believe that gold can perform well even if the Fed keeps rates unchanged, provided forward guidance indicates an imminent rate cut. However, a continued hawkish shift in the monetary policy outlook could create headwinds for gold, at least in the short term. Furthermore, if oil prices remain at $100 per barrel, becoming the new normal, it could limit golds upward momentum towards $5,000 per ounce.Fitch Ratings: Iranian conflict widens profit gap among Asia-Pacific chemical producers.

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