USD/CAD: positive data from both sides

USD/CAD: positive data from both sides

2020-09-30 • Updated

ADP, US GDP, Chicago PMI and Canadian GDP – all numbers exceeded expectations. Which currency will outperform? Let’s try to find out.

Fundamentals

The day was full of economic releases. The Canadian GDP m/m came out better than analysts expected: 3.0%, while the forecast was 2.9%. Besides, the US GDP q/q contracted by 31.4% in the second quarter, but still beat estimates of -31.7%. After the report the Canadian dollar surged, pushing USD/CAD to the downside.

Moreover, US Chicago PMI turned out 62.4, while only 52.0 was anticipated. What’s more important, the ADP report came out 749 000, which was better than estimates of 650 000. This data is generally used to predict NFP numbers, which will be out on Friday. As a result, it underpinned the USD.

Technical tips

If we look at the 4-hour chart, we’ll notice that USD/CAD has been trading in a horizontal corridor for over a week. There is the strong support at the intersection of the bottom of that range and the lower trend line at 1.3360. The pair is unlikely to break it. Moreover, the strong USD should eventually outrace the loonie. The move above the resistance of 1.3415 will drive the price to the next round number at 1.3500. Support levels are 1.3360 and 1.3300.

USDCADH4.png

TRADE NOW

Similar

Oil: Russia-Ukraine Crisis Could Boost Oil Prices
Oil: Russia-Ukraine Crisis Could Boost Oil Prices

Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera