USD/CAD ANLAYSIS & TALKING POINTS
- OPEC+ provide disturbance sees USD bid on increased inflation expectations.
- PMI’s dominate the financial calendar for each Canada and the US.
- Excessive breakout potential this week for USD/CAD.
Really helpful by Warren Venketas
Get Your Free USD Forecast
USD/CAD FUNDAMENTAL BACKDROP
The Canadian greenback is marginally weaker in opposition to the USD this Monday morning however comparatively stronger than most of its G10 counterparts on the again of a shock manufacturing lower announcement by OPEC+. The systemic influence on world economies significantly those that have been struggling to quell inflation are prone to be the toughest hit. From a CAD viewpoint, the oil linked forex has benefitted considerably from the sharp rise in crude oil costs however has been restricted by the upper chance of a Fed rate of interest hike as inflation issues develop.
Really helpful by Warren Venketas
Get Your Free Oil Forecast
Later at the moment, the financial calendar begins with the Canadian S&P Manufacturing PMI report which were steadily growing and if sustained could present an additional cyclical enhance after final week’s optimistic GDP information. The opposite is true for US Manufacturing PMI information because the US financial system has but to maneuver out of contractionary territory (< 50) – you will need to word that monetary markets place extra emphasis on the ISM report versus the S&P report for the US.
USD/CAD ECONOMIC CALENDAR
Supply: DailyFX Financial Calendar
TECHNICAL ANALYSIS
Commerce Smarter – Join the DailyFX E-newsletter
Obtain well timed and compelling market commentary from the DailyFX crew
Subscribe to E-newsletter
USD/CAD WEEKLY CHART
Chart ready by Warren Venketas, IG
After its greatest buying and selling week for CAD in opposition to the dollar since October 2022, worth motion on the weekly USD/CAD chart above exhibits bears piercing the long-term trendline help zone (black) for the third time this 12 months. The extent coincides with the 1.3500 psychological deal with and a affirmation weekly shut may open up the loonie to additional draw back within the weeks to come back.
Key resistance ranges:
Key help ranges:
- 1.3500/Trendline help
- 1.3300
- 50-day SMA (yellow)
IG CLIENT SENTIMENT DATA: BEARISH
IGCS exhibits retail merchants are presently LONG on USD/CAD , with 62% of merchants presently holding lengthy positions (as of this writing). At DailyFX we sometimes take a contrarian view to crowd sentiment leading to a short-term draw back bias.
Contact and followWarrenon Twitter:@WVenketas