USDCAD falls sharply after another upside surprise jobs. Price is below the it’s 200H MA.

USDCAD USD/CAD USD/CAD is a currency pair that includes the US dollar (symbol $, code USD) and the Canadian dollar Canadian …Read this term fell sharply after a much stronger than expected Canadian employment report. The 150,000 increase topped last month’s already strong 10 ,000 to 112,000. And we thought the US job market was strong! USDCAD declined on the report (higher CAD) and fell below the 200 hour MA of 1.33832 to a low of 1.33695. This low led to yesterday’s low of 1.33716. However, the price remains above Wednesday’s (and weekly) low. This level is 1.33592. Continued selling is in the 1.3339-1.3358 range, which will continue until early January (see all green numbered circles). Staying below this range would increase the adverse bias. Indeed, the price traded above and below this range for most of the transactions of the past week, and the price movements were also different. This week’s low (so far) stopped near the top of its swing range and also against the 200 hourly moving average (green line on the chart above). Import 200 Hourly Moving Average Moving Average The Moving Average is a statistical tool used to smooth out short-term fluctuations in data and reveal long-term trends. Calculated by taking…Read this term also stopped yesterday. Bottom line that gives sellers more control. Investors view the level as a key barometer of bullish and bearish movements. Holding below is more bearish. PS 200 hour MA stopped the decline on both Wednesday and Thursday. So the breakup is somewhat significant. BOC was thrown with the report today. In its latest policy meeting, the BOC said it will take a conditional pause on interest rates – subject to data – as it believes the hike will lead to slower growth and lower inflation. Now that you’ve worked massively for two months straight, you have to wonder how thinking might change. Comments from Macklem and others will be closely watched. Gains reflect the US after a huge gain of 517,000 jobs in non-farm payrolls and the unemployment rate at its lowest level since 1969. If job growth is so high, how can economic growth/recession be slower? How can they hope for lower inflation as well. I know employment is a lagging indicator, but the recent trend is towards strength, and that’s not good for the central bank story or narrative. PSS Central Bank of Mexico raised interest rates 50 BP higher than expected. North America is buzzing.

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