- The USD / CAD forecast indicates power in the oil markets, which increases Loonie.
- China and the United States will hold trade talks on Saturdays.
- The Fed will probably keep pending rates.
USD / CAD Forecast indicates power on oil markets due to hope for trade between China and the United States. As a result, a Canadian dollar is obtained to be sensitive. However, the move was subordinated as market participants rejoiced the FOMC policy meeting.
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Oil prices rose on Wednesday after the report that China and the United States will hold talks on Saturday. News were collected for the final war between the two countries. Participants in the market remained cautiously hope for the de-escalation of this Trade War. He significantly reshaped the look of the global economy.
Experts predict weaker growth, which will affect oil demand. Canada is the main exporter of oil. Therefore, lower oil prices are painful of loonic. However, talks between China and the US have launched hopes in a better future for oil and canada economy.
Meanwhile, the American economy showed resistance in April, lowers expectations to reduce the rates in June. Employment was stronger than the expected and business activity in the service sector continued to spread.
The Fed will probably keep pending rates. However, traders prices for the first incision in July. Trump announced a new tariff in the film industry on Sunday. If he continues his campaign, the American economy will suffer, and the Fed can be forced to reduce interest rates.
Today is key events USD / CAD
- Federal Function Rate
- Fomc statement
- FOMC Press Conference
USD / CAD Technical Forecast: Beroish Ranceut Show Light Swing
On the technical page, the USD / CAD price is broken below the support level for 1.3900. At the same time, he broke out of his consolidation surface between support from 1,3900 and resilience at 1.4102. However, the break was weak. The price is still held on 30ths.
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Meanwhile, the RSI still shows the bakery parting, which indicates the fading momentum. If the bears are weak, it may not take a lower lower longer before the bulls come back. Still, USD / CAD could be supported since 1,3800.
However, the break above the SMA will signal a bit feelings. The trend will only change when the price starts creating higher and lower. Otherwise, the bears will regain enough momentum to continue downhill.
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