ONLINE FOREX BROKER
2020-09-30 • Updated
ADP, US GDP, Chicago PMI and Canadian GDP – all numbers exceeded expectations. Which currency will outperform? Let’s try to find out.
The day was full of economic releases. The Canadian GDP m/m came out better than analysts expected: 3.0%, while the forecast was 2.9%. Besides, the US GDP q/q contracted by 31.4% in the second quarter, but still beat estimates of -31.7%. After the report the Canadian dollar surged, pushing USD/CAD to the downside.
Moreover, US Chicago PMI turned out 62.4, while only 52.0 was anticipated. What’s more important, the ADP report came out 749 000, which was better than estimates of 650 000. This data is generally used to predict NFP numbers, which will be out on Friday. As a result, it underpinned the USD.
If we look at the 4-hour chart, we’ll notice that USD/CAD has been trading in a horizontal corridor for over a week. There is the strong support at the intersection of the bottom of that range and the lower trend line at 1.3360. The pair is unlikely to break it. Moreover, the strong USD should eventually outrace the loonie. The move above the resistance of 1.3415 will drive the price to the next round number at 1.3500. Support levels are 1.3360 and 1.3300.
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
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