The British monthly GDP is announced on Friday at 09:00 MT time.
Market updates on September 4
Canadian Trade Balance data – 15:30 MT time (12:30 GMT)
BOC Rate Statement – 17:00 MT time (14:00 GMT)
Traders are curious about the mood of the Bank of Canada. Although the central bank is supposed to keep the rate on hold, the statement will be the midpoint of the meeting. The slowing global economy and trade tensions keep weighing on countries. If the BOC sounds hawkish, the loonie will rise. In the case of the dovish tone, the currency will suffer.
On the daily chart of USDCAD, MACD indicator has formed a bearish divergence with the price. It signals the pair is turning down. If we take a look at H4, levels of support are placed at 1.3315, 1.3278 and 1.3251. If the CAD is boosted by the economic data, levels will be reached. However, if the central bank sounds dovish or the actual trade balance data is worse than the forecast, the fall will be limited. Previous supports will become resistances. If the pair stays above 1.3315, the resistances are at 1.3370 and 1.3373.
GBPUSD has strengthened on the Brexit news.
Although the British Parliament started working only yesterday, it managed to affect the British currency.
As the Parliament doesn’t have a lot of time to prevent the no-deal Brexit, today members are supposed to put forward a draft law that would force Mr. Johnson to delay Brexit until January 31, 2020. If the law passes, the Prime Minister will call the general election. Thus, the British currency will continue being highly volatile.
Up to now, the GBPUSD pair has been targeting the resistance at 1.2178. RSI indicator is about to cross the overbought area. However, the pair still has a chance to keep rising. If 1.2178 is broken, the next range of the resistance is 1.2214-1.2240.
If the pair moves down, supports are placed at 1.2117 and 1.2080.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The US unemployment claims are out on Thursday at 15:30 MT time.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.