EUR/USD 1.14966
0.290%
Gold 4379.05
2.700%
Oil 95.750
-1.775%
USD/JPY 155.632
-0.412%
GBP/USD 1.33786
-0.009%
GBP/JPY 208.223
-0.418%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On September 17th, when asked whether it was reasonable for the market to price in nearly four interest rate hikes within the next year, Bank of England Governor Bailey said on Thursday that the outlook was too unpredictable, adding that his officials had not yet discussed this. "Weve had a lot of discussions this time, but we havent discussed the prospect of four rate hikes," Bailey told the media after the Bank of England kept interest rates unchanged but warned of rising inflationary pressures. He added, "The market has to form its own judgment, but I must point out: the current situation... is simply too unpredictable." Bailey stated that the state of the UK gilt market—with the 30-year gilt yield hitting its highest level since 1998 this week—did not influence the banks announcement. Bailey said, "We planned this work long before the Middle East conflict, so this is not at all a reaction to market conditions."The U.S. pending home sales index fell 4.9% year-over-year in August, compared with a forecast of -3.9% and a previous reading of -2.50%.The U.S. pending home sales index rose 0.3% month-over-month in August, compared with expectations of -0.6% and a revised previous reading of -2.6% (from -2.30%).The U.S. pending home sales index for August was 71.2, revised from 71.2 in the previous month.Israels Permanent Representative to the United Nations: Our message to the Syrian government is very clear: if you wish to reintegrate into the international community, you must ensure that Syria is not used as a platform for terrorist activities or an arena for foreign powers to vie for power.

USD / CAD Price Analysis: As US Inflation decelerates, the recovery move to approximately 1.3700 appears vulnerable

Daniel Rogers

Mar 15, 2023 11:45

 USD:CAD.png

 

After declining to approximately 1.3650, the USD / CAD pair has made a less certain rebound move. A deceleration in U.S. inflation suggests a further decline in demand for safe-haven assets in the aftermath of the Silicon Valley Bank (SVB) failure, putting the Loonie asset in jeopardy near 1.3700.

 

According to CNBC, Moody's Investors Service has lowered its prognosis on the entire banking system from stable to negative, causing S&P500 futures to decline in the early Asian session. The situation reveals a minor pessimism in the general risk-taking disposition.

 

As US inflation continues to decline, the Federal Reserve (Fed) will likely continue to raise interest rates at a slowing rate. Inflation in the United States is falling in accordance with expectations, so Fed Chairman Jerome Powell should not hurry to tighten monetary policy further.

 

USD / CAD has recovered after detecting a cushion close to the horizontal support derived from the March 1 high at 1.3659 on a two-hour scale. The dearth of conviction and fortitude in the US Dollar's recovery increases the likelihood of further asset losses.

 

The 20-period Exponential Moving Average (EMA) at 1.3710 may continue to act as a barrier for the US Dollar.

 

In the interim, the Relative Strength Index (RSI) (14) has protected the decline into the bearish 20.00 to 40.00 range. However, the negative bias is still evident.

 

A conclusive breach of the low of March 14 at 1.3652 would push the currency toward the low of March 07 at 1.3600, then the low of March 03 at 1.3555.

 

In an alternative scenario, a confident recovery above the high of March 14 at 1.3750 would propel the major toward the highs of March 13 above 1.3800 and March 09 at 1.3835.


Suggestion