Solid News

USDCAD Rises

9/1/2022 12:05 PM

During the Asian session, the USD/CAD pair is actively growing, renewing local highs since July 14, and testing 1.3160 for a breakout, strengthening expectations of a further increase in interest rates from the US Federal Reserve. The next meeting of the monetary policy regulator will take place as early as next week, and current forecasts suggest that the agency will raise interest rates by 75.0 basis points for the third time in a row in an attempt to contain further inflation. The American currency is also moderately supported by macroeconomic statistics from the USA.

The data released yesterday in Canada on the dynamics of gross domestic product (GDP) failed to meet the expectations of experts, which was reflected in a moderate depreciation of the national currency. Thus, renewed statistics on the annual growth of the indicator for the second quarter indicated a positive trend of only 3.3% against the previous estimate of 3.1%, although analysts' forecasts assumed an increase in value by 4.4%. Canada's economy added 0.1% MoM in June after zero growth in May.


On the daily chart, Bollinger Bands are actively growing: the price range is expanding, but at the moment, it is not keeping with the burst of bullish activity. The MACD indicator is growing, keeping a strong buy signal (the histogram is above the signal line). Stochastic keeps a confident upward direction but is close to its highs, indicating that the USD may become overbought in the ultra-short term.

Resistance levels: 1.3200, 1.3241, 1.3300, 1.3350. | Support levels: 1.3150, 1.3100, 1.3050, 1.3000.




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