Created
: 2024.05.07
2024.05.07 23:01
The USD/CAD pair consistently faces pressure near the round-level resistance of 1.3700. The Loonie asset is broadly sideways around 1.3680 due to the absence of top-tier United States economic data this week. In Canada, investors will keenly focus on the Employment data for April, which will be released on Friday.
Therefore, speculation about the Federal Reserve's (Fed) and Bank of Canada's (BoC) interest rate outlook will guide the movement in the Loonie asset.
The market sentiment is slightly bullish amid firm speculation that the Fed will begin lowering interest rates from its current level in the September meeting. The S&P 500 opens on a cautiously positive note, suggesting an improvement in investors' risk appetite. 10-year US Treasury yields have dropped to 4.45% as the Fed unwinding its restrictive interest rate stance is an unfavorable condition for interest-bearish assets.
The US Dollar Index (DXY) struggles to sustain above 105.00 as weak US Nonfarm Payrolls (NFP) and poor Services PMI data for April has prompted expectations for the Fed to start reducing borrowing rates from September. Weak US data has raised concerns over the US economic outlook, which investors had been anticipating as strong due to upbeat Gross Domestic Product (GDP) growth.
Meanwhile, less hawkish commentary from Fed policymakers has also weighed on the US Dollar. On Monday, New York Fed Bank President John Williams said the next move from the central bank will be rate cuts.
On the Canadian Dollar front, investors await the Employment data that will influence expectations for BoC rate cuts, which are currently anticipated in the June meeting. Statistics Canada is expected to report an increase in number of payrolls by 20K against a drawdown of 2.2K in March. The Unemployment Rate is estimated to increase to 6.2% from the prior reading of 6.1%. Investors will keenly focus on the annual Average Hourly Wages data that will indicate wage growth, which indicates the inflation outlook.
Created
: 2024.05.07
Last updated
: 2024.05.07
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy