- The USD / CAD label displays the restored tariff uncertainty in the US, drags the dollar below.
- Greenback woke up last week after Trump said that there was significant progress in trade conversations.
- Business activity in the American services sector has expanded further.
The USD / CAD label displays the restored tariff uncertainty in the US, drags the dollar below. Greenback fell on his peers Monday after Trump announced new film tariffs. Meanwhile, market participants have prepared for the FOMC policy meeting.
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Trump announced a 100% tariff on all the films made outside the US. This hopes of hopes of the American president is taking a softer stance on trade policies. As a result, the dollar dropped.
Last week, Greenback has recovered after Trump said there was significant progress in trade talks. He said the United States will soon sign trading offers with several countries, including India. However, market participants are still waiting for this. In addition, the trade war between China and the US still harm both economies. Trump said several times that the two countries approached the agreement. However, progress has stopped. Refacation of tariff uncertainties could re-reflect investor and dollar confidence.
However, the data on Monday found that the business activity in the American services sector has expanded further, making fear of recession easier. The report followed the load of the monthly employment report. As a result, fed the incorporate bets of the department in June. The market participants now prices only 37% chance of such a move.
Meanwhile, the Fed will probably maintain interest rates unchanged at a meeting this week.
Today is key events USD / CAD
- Federal Function Rate
- Fomc statement
- FOMC Press Conference
USD / CAD TECHNICAL Outlook: Bears are struggling to separate from consolidation
On the technical page, the USD / CAD price remains in a narrow range between the support of 1,3800 and resilience at 1,3900. After a sharp drop, the bear momentum weakened when the price reached the support of 1,3800. The RSI made a little divergence, signaling the reversary located.
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In the range, the price is approaching support, which means that bears can try to break. The break below the range support will confirm the continuation of the previous trends.
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On the other hand, if support keeps the company, the bulls will return to restart resistance. Given the Divergence of the RSI, it is more likely to be a bulb interruption. Such a move would allow USD / CAD to reset the resistance of 1,4100.
