USD/CAD eyes a bumpy ride as BOC-Fed policy divergence sets to expand ahead – by Sagar_Dua24 USDCAD SEO Fed BOC DollarIndex
prices and better-than-projected payroll data. Oil prices recovered sharply amid multiple tailwinds. Easing lockdown curbs in China and upbeats US Nonfarm Payrolls data strengthened global economic projections. It is worth noting that Canada is a leading oil exporter to the United States economy and solid oil prices support the Canadian Dollar.
The Canadian economy added 10.1K jobs in November vs. the projections of 5K. Also, the Unemployment Rate has eased to 5.1% against the projections of 5.3%. This is going to delight the Bank of Canada to announce a higher rate hike in its mission of bringing price stability.Canada’s inflation rate remained unchanged in October at 6.9%, which indicates that the Bank of Canada is required to continue its policy tightening measures further to curtail inflationary pressures.
A 50 bps rate hike by the Bank of Canada will accelerate the interest rate to 4.25%. This is going to widen the BOC-Fed policy divergence, which is impacting the Loonie asset for now.USD/CAD is at a make or a break near the edge of the upward-sloping trendline of the Ascending Trianglepattern on a four-hour scale. The upward-sloping trendline of the chart pattern is placed from November 16 low at 1.3228 while the horizontal resistance is plotted from November 10 high at 1.3571.
The Loonie asset has dropped below the 50-and 200-period Exponential Moving Averages at 1.3436 and 1.3459 respectively, which indicates that the short-term and long-term trend is bearish. Meanwhile, the Relative Strength Index is hovering around 40.00. A breakdown of the same will trigger a bearish momentum.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
USD/CAD juggles around 1.3470 as focus shifts to BOC monetary policyThe USD/CAD pair is displaying back-and-forth moves around 1.3470 in the early Asian session. The loonie pair has turned sideways as investors are shi
Consulte Mais informação »
Weekly Forex Forecast \u2013USD/JPY, AUD/USD, USD/CAD, EUR/USDGet the Forex Forecast using fundamentals, sentiment, and technical positions analyses for major pairs for the week of December 4th, 2022 here.
Consulte Mais informação »
Canada's deep yield curve inversion adds to BoC rate hike dilemmaAs the Bank of Canada considers ditching oversized interest rate hikes, it is dealing with an economy likely more overheated than previously thought but also the bond market's clearest signal yet that recession and lower inflation lie ahead.
Consulte Mais informação »
Week Ahead: Strong Jobs Report Could Test Fed and Short-Term Rally | Investing.comMarket Overview Analysis by Pinchas Cohen/Investing.com covering: XAU/USD, S&P 500, US Dollar Index Futures, Gold Futures. Read Pinchas Cohen/Investing.com's latest article on Investing.com
Consulte Mais informação »
NY Fed paper ties reverse repo surge to bank regulation changePersistently massive inflows of cash into a key Federal Reserve facility are in large part being driven by a bank liquidity regulation change from last year, a report from the New York Fed said Friday.
Consulte Mais informação »
Stocks close mixed after strong hiring report fuels inflation worriesMarkets were mixed on Friday after a surprisingly strong jobs report renewed worries about inflation and more rate hikes from the Federal Reserve.
Consulte Mais informação »