USD/CAD: outllook for April 10-14

USD/CAD: outllook for April 10-14

2019-11-11 • Updated

USD/CAD continues to trade mostly sideways in the broad consolidation range of 1.3260 – 1.3455. On Tuesday, the greenback spiked to 1.3455 after we got a disappointing trade balance release out of Canada. Towards the end of the week, loonie managed to snatch substantial gains and recoup some of its losses due to surging oil prices. The latter ones hit their last month highs (Brent oil futures reached $56.07 on Friday) after the launch of US missiles against a Syrian government airbase. The US labor market report released on Friday was a mixed bag with the better-than-expected unemployment rate and missing NFP data.  

Next week the Bank of Canada will announce its rate statement on Tuesday at 5:00 MT time. There is a small risk of a significant change in the bank’s current policy stance, as economic performance of the country and Canada’s inflation figures have little changed from February. Country’s exports are still facing some challenges with competitiveness and protectionist rhetoric increases in the US. A dovish stance of the bank will keep Canadian yields and the loonie under pressure. Any hawkish skew in the statement can lead to the short-term appreciation of the CAD. In the end of the week, traders should be focused on Canadian manufacturing sales and US inflation figures.

At the present moment, the technical outlook for the pair is neutral. If prices break the upper border of 1.3260/1.3455 consolidation range, there will be a continuation of the rally towards resistances at 1.3533 (March 9 high), 1.3600.  On the downside, the immediate supports can be found at 1.3290/1.3260 levels. 

Similar

Oil: Russia-Ukraine Crisis Could Boost Oil Prices
Oil: Russia-Ukraine Crisis Could Boost Oil Prices

Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera