- The USD / CAD price analysis indicates a lower probability that the cross-section in June is crossed.
- Basic inflation in Canada was warmer than expected.
- FED policy makers maintained that economic appearance was uncertain.
The USD / CAD price analysis indicates a lower probability that the Canada Rate Bank has been reduced in June, which pushes the Canadian dollar higher. At the same time, the dollar was fragile after fed policy makers claimed that the risk of stagflation in the United States remained high after the change in trump.
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Data on Tuesday found that inflation in Canada fell by 0.1% as expected. However, basic inflation was warmer than expected. Median CPI increased by 3.2% compared to a forecast of 2.9%. Meanwhile, the trimmed CPI came to 3.1%, considerably above a confidence forecast of 2.8%. The hillside guesses amplified the Canadian dollar. Moreover, the numbers lowered the likelihood of reducing the hip disease in June.
Before reports, traders appreciated 65% chance of interrupting in June. However, it has fallen at 33% after the report. At the last meeting, the Bot stopped mitigating. With inflation, they can still pause in June again.
On the other hand, fed policy makers maintained that the economic look was uncertain. Fed Alberto Musalem noted that despite the recent trade truce between China and the United States, the labor market could further weaken. At the same time, inflation can be increased.
Today is key events USD / CAD
The market participants do not expect key economic editions from the US or Canada. Therefore, traders will maintain the digestion of Canada inflation reports.
USD / CAD Technical price Analysis: Triangle punch signals a new drop
Technical price analysis USD / CAD
On the technical page, the USD / CAD price broke out of its samples of the triangle. At the same time, the price violated below the level of support from 1,3900, which is smaller and confirmed by a new direction. Bear bias is strong with price significantly below 30th and RSI near the region.
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Initially, the price paused its rally and started trading in triangles below the key level 1,4000. In the end, the price erupted on the flake to start a new trend. Bears are now aiming to the level of support from 1,3800.
However, the price could be retired to re-set the triangle before collapsing to fresh lower. The decline will continue until the price has its position under the 30th and RSI remains under 50 years.
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