Peter Bukov
Axiory Global Ltd.
The USDCAD pair has been consolidating recently, and the greenback was somewhat stronger ahead of the US session on Friday.
Later in the day, the US PPI indices are due, which could cause some volatility in the markets.
Moreover, the Canadian labor market data are due, with markets expecting the unemployment rate to improve to 8.0% from 8.2% previously. The Canadian economy most likely created only 100,000 new jobs in March, well down from 259,000 in February and nearly 10 times less than the US economy created in the same month.
The USDCAD pair will most likely be volatile after the data. It looks like the pair has found support near 1.25 again, and it might be forming a reverse head and shoulders pattern, which is a bullish formation.
Therefore, if today's data disappoint, the risk for the USDCAD pair is to the upside. The resistance could be at 1.2650, and if not held, further gains toward 1.2750 might occur.
Alternatively, if there is a bearish reaction to the data, we might see another test of the mentioned 1.25 level.
It looks like oil has peaked for the near future, which could undermine the Canadian dollar as well.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
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.