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USDCAD Shows Flat Trades

11/2/2022 11:40 AM

During the Asian session, the USD/CAD pair is moderately declining, trading around 1.3608, after hesitant attempts to grow at the beginning of this week.

Market activity remains subdued as most investors await the US Federal Reserve's decision on monetary policy. Following a two-day meeting in early November, the regulator will likely raise the interest rate again by 75.0 basis points, bringing it to 4.0%. At the same time, the market expects hints of a possible easing of the "hawkish" monetary policy in the future, as the published macroeconomic statistics increasingly clearly indicate the beginning of a slowdown in the US economy.

Another important point this week will be the US and Canadian labor market reports for October, which will also contribute to the formation of a complete picture of the prospects for the monetary policy of both regulators. Current forecasts suggest that Nonfarm Payrolls in October will grow by 200.0K after increasing by 263.0K last month, while analysts predict an increase in the unemployment rate from 3.5% to 3.6 %. Canadian statistics are unlikely to be more optimistic: expert estimates suggest an increase in employment by only 10.0K, which is half the September figures, and unemployment will increase from 5.2% to 5.3%.

On the daily chart, Bollinger Bands are steadily declining: the price range is narrowing, reflecting the ambiguous nature of trading in the short term. MACD is falling, keeping a poor sell signal (the histogram is below the signal line). Stochastic, on the contrary, remains upward, which weakly correlates with the real dynamics of the instrument in the short and ultra-short term.

Resistance levels: 1.3650, 1.3700, 1.3759, 1.3853. | Support levels: 1.3600, 1.3550, 1.3500, 1.3440.

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