Solid News

USDCAD Market Update

8/10/2022 12:21 PM

During the Asian session, the USD/CAD pair shows ambiguous trading dynamics, consolidating near 1.2900.

Investors are waiting for new growth drivers for the trading instrument, which may be US data on consumer price dynamics: average market forecasts suggest that inflationary pressure will begin to decrease in response to a sharp increase in borrowing costs from the US Federal Reserve. The labor market report for July, released on Friday, strengthened analysts' confidence that the regulator will continue its "hawkish" monetary policy.

Statistics from the Canadian Department of Labor reflected another fall in the number employed in the country in July by 30.6K after a decrease of 43.2K earlier, although market forecasts assumed a moderate increase in the indicator by 20.0K. Against this background, the share of the labor force in the total population declined from 64.9% to 64.7%, in stark contrast to the expected rise to 65.3%, while the unemployment rate remained unchanged at 4.9% rather than rising to 5.0% as expected. Ivey's business activity statistics provided additional pressure on the Canadian dollar: in July, the indicator fell from 57.8 points to 53.2 points.

On the daily chart, Bollinger bands are moving flat: the price range remains practically unchanged, remaining quite spacious for the current market activity level. The MACD indicator grows, keeping a poor buy signal (the histogram is above the signal line), and tries to consolidate above the zero line. Stochastic, on the contrary, maintains a confident downward direction and practically does not react to restoring the "bullish" activity in yesterday's trading.

Resistance levels: 1.2900, 1.2950, ​​1.3000, 1.3050. | Support levels: 1.2850, 1.2800, 1.2750, 1.2700.

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