The USD/CAD pair is showcasing a strongly developing downtrend, struggling to reverse recent losses in early Asian trade as it hovers near the 1.3570 mark. This trend offers key insights into the pair’s future movements. Key Points: 29 November 2023, 14:02 – USD/CAD: Strongly Developing Downtrend on the Charts – Scotiabank In early Asian trade, […]
As Wall Street contends with a multifaceted set of variables, including economic data releases, central bank policy decisions, and geopolitical developments, a nuanced approach is essential for market participants. The coming days are poised to be pivotal, offering both challenges and opportunities for traders and investors alike.
Global markets are in a state of flux, with Wall Street declining due to unexpected U.S. job openings and potential Federal Reserve rate hikes. Asian markets are also suffering, hitting an 11-month low. Currency markets are volatile, especially the USD/JPY and USD/CAD pairs. The Reserve Bank of New Zealand has raised interest rates to a near 14-year high. Commodities and digital assets show mixed performance, with gold prices at a 7-month low and crude oil experiencing a slight uptick.
The Canadian Dollar (CAD) has shown gains against the USD, yet faces an uncertain recovery path. Historically, the USD/CAD rate struggles to maintain levels above 1.35. Short-term technicals favor CAD, but it faces significant support at 1.3495. Concurrently, the USD Index retains its bullish trajectory. Economic indicators present a mixed backdrop for Canada.
The USD/CAD pair is trading near 1.3640, shrugging off bullish oil price trends. The Bank of Canada is expected to keep rates stable at 5.00%, while mixed U.S. economic data keeps the USD strong. Market focus is on the upcoming U.S. ISM Services PMI and BoC rate decision for clearer directional cues.
USD/CAD Holds Ground Near 1.3500 Amid US Dollar Revival, Despite Weak Data; Overbought Signals Detected
The USD/CAD pair is holding firm around 1.3500, despite weak US economic data for July. Awaiting insights from the Jackson Hole Symposium, the US Dollar Index continues to climb. Meanwhile, the Canadian Dollar is affected by falling oil prices. Scotiabank sees USD-bullish trends but cautions the currency is overbought. Key resistance and support levels are identified.