Forex » USD/CAD pair tested psychological level of 1.34

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The pair USD/CAD tested the psychological level of 1.3400

  • The USD/CAD pair is under pressure from the forex and trendline below 1.3440/50.
  • The FOMC minutes are watching the direction of the US dollar.

The Canadian dollar fell against the US dollar and all other G10 currencies in the forex market on Wednesday as oil prices fell. The USD/CAD pair is up 0.3% after moving between lows of 1.3356 and highs of 1.3440 ahead of Bank of Canada Governor Tiff Macklem and the Federal Open Market Committee’s minutes.

two USD/CAD Under pressure despite dollar depreciation in foreign exchange following many US economic data (including durable goods orders, PMI, complaints, new home sales, Michigan final sentiment) The data were solid for the most part, but the shocking result of the US manufacturing PMI fell a thousand below expectations.

US: S&P Global Manufacturing PMI fell to 47.6 versus 50 in November.

Nevertheless, Prix ​​du petrol It exploded on Wednesday as China continued to battle a rise in Covid-19 infections, imposing massive testing and lockdown measures, slowing economic growth and reducing demand for oil from the world’s major importers. At the same time, the European Union is trying to impose a price cap on Russia’s oil exports. In addition, one report showed that US stocks fell significantly more than expected.

In addition to the FOMC statement, Bank of Canada Governor Tiff McCrem and First Deputy Governor Carolyn Rogers are scheduled to meet at the House of Representatives’ Permanent Finance Committee at 4:30 p.m. ET. GMT).

FOMC minutes

Today’s PMI data led the US dollar ahead of the release of the FOMC minutes. First, recent data on U.S. consumer prices have been cooler than expected and have already created sentiment that the Fed will turn around, prompting investors to believe the central bank can soften the booming rhythm. I hope In previous declarations, “Pour determinaire le rythme des Augmentations futures de la fourchette cible, le Comité tiendra compte du resserrement cumulé de la politique monétaire, des décalages avec lesques la politique monétaire impacte l’activité économique et l’inflation, et des évolutions économiques et financières.”

The declaration has caused volatility in the market and investors are positioning themselves for a more flexible approach on the part of the Fed, although President Jerome Powell has opposed it, possibly adding to the final interest rate and possibly raising it. suggests that there is Therefore, procedural languages ​​are considered in this regard. Valeurs Mobilières TD.

“Mais par-dessus tout, nous Attendons des minutes quelles metten beaucoup l’accent sur la probabilité que le taux terminal doive finir par être plus élevé que prevé initialement. La Fed doit encore moudre le marché du travail pour alignner la croissance des salaires et des costs des menages sur des rates more consistent avec l’objectif d’inflation.

Dans un tel scénario, cela pourrait mettre une offre sur le Dollar americain qui aété péétiné before l’événement. below the chart.

Analysis method USD/CAD

The USD/CAD pair has broken out of the trend line this month and corrected resistance on the downside outlook. This is also shown in the following hourly graphs.

US Dollar/Canadian Dollar Forex 23 Nov 2022

Ross J. Berland, FXStreet

Ross Berland started his foreign exchange career in 2001 at the City of London. Initially he was employed in his FX division at Sucden (UK) Ltd as Corporate Sales and Junior Dealer (FSA Accredited Investment Advisor) and eventually in a role as an Institutional Investor. Forex spot on the market. -faire un bureau before d’être recruté pour rejoinder le département FX d’Investec Bank sur Gresham Street dans un rôle de vente / negociation client, spécialisé dans la gestion de tressure d’entreprise et la finance spécialisée.

The opinions expressed herein are solely those of the author and do not necessarily reflect the views of Forex Québec. Each investment and trading move involves risk. You should do your own research when making a decision.

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