- Canada's quarterly GDP report has a significant impact and moves the C$.
- The Market Impact Tool shows trading opportunities in both upside and downside surprises on this event.
- The USDCAD moved, on average, 13 pips in the 15 minutes after the data release and 39 pips in the following 4 hours.
Selling USD/CAD Scenario
-
Tradable Positive Trigger: +1.02 deviation (0.22) [SELL Pair]
-
Key Support Level: 1.2970
This time, if it comes out at higher than expected with a relative deviation of 1.02 or higher(0.22 or higher in actual terms), the pair may go down reaching a range of 35 pips in the first 15 minutes and 74 pips in the following 4 hours.
Below the round number of 1.3000, we find 1.2970 that supported the pair in mid-September and during August. 1.2880 is a double-bottom after serving as support in both late September and late August. 1.2820 dates back to May.
Buying USD/CAD Scenario
-
Tradable Negative Trigger: -0.82 deviation (2.64 ) [BUY Pair]
-
Key Resistance Level:
If it comes out lower than expected at a relative deviation of -1.07 or less(-0.02 or lower in actual terms), the USDCAD may go up reaching a range of 45 pips in the first 15 minutes and 83 pips in the following 4 hours.
1.3100 was a support line in September and resistance in August. 1.3175 capped the pair in early August. 1.32220 was a swing high in early September.
USD/CAD Levels on the Chart
-636736531794627912.png)
More data
Canada's economy stalled in June after upbeat figures in the previous months. The first month of Q3 is projected to see an increase of 0.2% MoM. The US trade tariffs will probably be felt.
See: Canadian GDP Preview: Expecting a positive first peek into Q3, USD/CAD set to move
In the last five releases, the USDCAD moved, on average, 13 pips in the 15 minutes after the data release and 39 pips in the following 4 hours. The previous release had a negative surprise of -0.83 in terms of relative deviation and the USDCAD reached a 16 pip range in the first 15 minutes and a range of 44 pips 4 hours thereafter.
Follow the publication of the figure on the economic calendar. Watch out for the data from the Market Impact tool, projecting the potential price changes according to the deviation. Here is the Market Impact Studies Users Guide.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD alternates gains with losses near 1.0720 post-US PCE
The bullish tone in the Greenback motivates EUR/USD to maintain its daily range in the low 1.070s in the wake of firmer-than-estimated US inflation data measured by the PCE.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.