- Forecast for USD / CAD indicates a declining American economy.
- Private employment in the US was lower than expected in March.
- The US report in GDP discovered that the economy was contracted by 0.3%.
The USD / CAD forecast signifies the declining American economy, exercising the federal reserves at lower interest rates in June. At the same time, the Canadian economy unexpectedly contracted, increasing the chance that the Boc will continue their cycle relief.
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Data on Wednesday found that private employment in the US was lower than expected. The economy added 62,000 jobs compared to forecasts of 114,000. The decline indicated a weaker demand in the labor market in April, probably due to Trump tariffs.
Meanwhile, the advanced US GDP report found that the economy was contracted by 0.3%. Economists expected spreading from 0.3%. However, the decline was not so big because most experts were afraid. Some major banks predicted over 1% contraction in the economy. Consequently, the decline in the dollar was limited.
A special report has shown that the basic PCE is unchanged. In the meantime, economists expected an increase of 0.1%. Data on the fall, in combination with softer than expected inflation, increased expectations to reduce rates to the supply in June.
On the other hand, data from Canada have detected that the economy was contracted by 0.2% compared to expectations without change. This could also press the Canada Bank to return to reduce the reduction after a break at the last meeting.
Today is key events USD / CAD
- Unemployment Notices USA
- ISM Production of PMI
USD / CAD Technical Forecast: Bears Loss of swing
On the technical page, the USD / CAD price is caught in the side moving near the level of support from 1,3800. Currently, the price trades below 30ths, indicating that the bears are stronger. At the same time, RSI is under 50 in the Medvedian territory.
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Therefore, bears could try to break under and separate from the key level of 1,3800. However, the bear momentum faded because the trend has reached current support. The price began to cut through 30 SMA without a clear direction. At the same time, the RSI made a bakery parting, proposing weakness in the fall.
Divergence may allow the bulls to take responsibility by breaking above the SMA and imagining the key level 1,4050. Meanwhile, if bears recall the swing, USD / CAD will continue to danger.
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