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 volatile
2019-11-11 • Updated
BUY 1.3500; TP 1.3535; SL 1.3485
SELL 1.3460; TP 1.3435; SL 1.3470
The day promises to be quite interesting for USD/CAD. The market awaits the news about the trade talks between the United States and China. In addition, the Federal Reserve’s Chair Powell will speak at 15:30 MT time and America will release producer price index. On the one hand, concerns about trade negotiations are positive for USD/CAD. On the other hand, forecasts for PPI are low and Powell may sound dovish thus hurting the greenback.
Technically we favor the upside in USD/CAD in line with the general trend and the recent attempts of the pair to break higher and reach the resistance at 1.3535. Yet, momentum is not that strong, so the ultimate direction of the upcoming swing will depend on the news.
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.