- Outlook USD / CAD indicates a sudden shift in feeling.
- The American economy added only 73,000 jobs in July.
- Trump has imposed a 35% channel to Canada after two countries fail to achieve trade work.
The odds of USD / CAD indicates a sudden shift in feeling after the United States has published a bad monthly employment report. However, the basics continue to indicate a further weakness for Loonie after Trump imposed Tariff 35% on Canada.
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The American economy added only 73,000 jobs in July. This is almost half of the previous reading. Meanwhile, economists expected the economy to add 106,000 jobs. At the same time, the unemployment rate increased from 4.1% to 4.2% as expected.
The report could increase the pressure on the FED at lower borrowing costs. Therefore, the bets will reduce the speed for September will probably appear. During the policy meeting, Powell emphasized the unemployment, which could lead to the central bank to take the wind tone.
“The Chairman Fed Powell set up a greater emphasis on the unemployment rate, which is expected to grow diligently from 4.1% to 4.2%,” Francesco Pesole FCS strategic said.
Jobs missed to a sharp drop of dollars, which allowed the Canadian dollar to breathe. Trump imposed a 35% on Canada on Friday after the two countries had failed to achieve trade agreement. Levi will harm the Canadian economy by reducing demand for his goods. This is likely to press the Canada bank to continue reducing the rate.
Today is key events USD / CAD
USD / CAD Technical Outlook: Bear Moment Trigger Withdrawal
On the technical side, the price of USD / CAD sharply pulled back after it has made new heights above level 1,3850. However, it remains above the 30th, a sign that the bias of Bikala remains intact. At the same time, RSI is still over 50, suggesting a strong momentum.
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However, the bears showed a sudden strength by being such a big candle. If it is closed with a large body, it could form thanks to a candle that would signal probably a turnaround. Such an outcome would allow bears to push the price below 30th.
On the other hand, if it closes with a large mint at the bottom, the inherent will be able to continue after a short return. If USD / CAD continues higher, the next goal will be at the level of 1,3900 psychological levels.
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