Home Daily Analysis Forex Market Overview Daily FX Brief, May 31– Market Wrap – Canadian GDP In Play!

Daily FX Brief, May 31– Market Wrap – Canadian GDP In Play!

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FX Market Wrap

The U.S. stocks supported by posting decent gains. The Dow Jones Industrial Average scored 43 points (+0.2%) to 25169, the S&P 500 moved up 5 (+0.2%) to 2788, and the Nasdaq Composite climbed up 20 points (+0.3%) to 7567.

An official second forecast noted that U.S. GDP grew at an annualized rate of 3.1% on quarter in the first quarter (vs. +3.0% expected).

Greenback remained steady at one month-high on Thursday, closing at 98.15, associated with 98.14 in the prior session.

The single currency euro was mostly flat at $1.1130, while the British pound slid 0.2% to $1.2608, posting a four-day drop.

USD/JPY slipped 0.2% to 109.33. Official data revealed that Japan’s jobless rate slumped to 2.4% in April (as presumed) from 2.5% in March, while industrial production advanced 0.6% on the month (vs. +0.2% expected). Also, retail sales remained smooth on month in April (vs. +0.6% expected).

The United States government bonds extended their rally amid faltering economic and political changes. The benchmark U.S. 10-year Treasury yield recorded a fresh 20-month closing under 2.227%.

Trading USD/CAD on Gross Domestic Product

The Bank of Canada repeated at its policy conference that the market would likely trigger growth in the Q2 of 2019. Market experts, however, forecasts that GDP growth data could show early symptoms of improvement on Friday at 1230 GMT despite the global trade risks.

CAD- GDP m/m

After registering the poorest extension of 0.4% in more than two years in Q4, the Canadian yearly GDP growth is anticipated to have crawled up to 0.7% q/q in the first three months of this year.

Whereas such a result would still fall short of the two-year average of about 2.4%, traders could boost their faith in the economy as the sustained jobs growth and a further rise in average hourly earnings reveals that economic instability in previous quarters was probably temporary.

USD/CAD – Technical Analysis

After violating over a short-term range, USD/CAD seems ready for additional upside moves. As you can see, the pair is a few pips away from the 1.3485 levels, which is right above previously violated resistance level. By the way, it’s working as support now.

The USD/CAD is nearing its resistance at 1.3522 (61.8% Fibonacci extension, 76.4% Fibonacci retracement, horizontal swing high resistance) where it is could reverse down to its support at 1.3452 (76.4% Fibonacci retracement, horizontal pullback support).

Stochastic (89, 5, 3) is approaching its resistance at 93% where a corresponding reversal is expected.

USD/CAD – Trade Tips

Buy – Long positions above 1.3490 with targets at 1.3545 & 1.3585 in extension.

Sell – Below 1.3490 look for further downside with 1.3455 & 1.3430 as targets.

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