The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.
USD/CAD is capable of more
2020-01-23 • Updated
USD/CAD made big moves during the Bank of Canada’s meeting yesterday. Still, the rally may not be over yet. Canadian central bank has given the market a lot of negative fuel, so the CAD may keep losing versus the USD. This means upside for USD/CAD.
The pair has formed a bottom in the 1.2950 area earlier this month (2019 support line). This week it has made a big advance above the 200-week MA and is currently testing the 100-week line in the 1.3160 area. Another resistance is at 1.3185 (61.8% Fibonacci retracement of the November-January decline). In the short term, corrections are possible, but the declines should meet support at 1.3140 and 1.3095 offering buy opportunities at these levels. Upside targets lie in the 1.3245 and 1.3300 areas.
BUY 1.3100; TP1 1.3170; TP2 1.3235; SL 1.3080
BUY 1.3195; TP 1.3235; SL 1.3180
It seems like the Canadian consumer has a firm grip on their wallet, which is no surprise given the current economic climate. Inflation in April crept up from 4.3% to 4.4%, adding to the financial woes.
On Wednesday, the US dollar weakened in anticipation of the US CPI data, which could influence market exposure. A Bloomberg survey predicts a year-on-year read of 5.0% to the end of April. Market sentiment is affected by the US debt ceiling and issues with regional banks. While the major APAC equity indices are...
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.