2023-07-12 • Updated
The Bank of Canada (BoC) is expected to raise interest rates for the second time in a row on Wednesday, reflecting resilient growth, a tight labor market, and persistent underlying inflation. Despite signs of a slowdown, including cooling inflation and a surprise trade deficit, the market anticipates another rate hike. The economy has shown resilience, with the housing market increasing and job additions exceeding expectations in June. According to analysts, the BoC is likely to raise rates by 25 basis points to 5%. Most economists expect the central bank to hold rates steady until well into 2024.
NZDCAD presents an interesting argument for a bearish continuation. This can be seen from the following factors;
Analyst’s Expectations:
Direction: Bearish
Target: 0.80916
Invalidation: 0.82402
GBPCAD has made the initial reaction from the weekly pivot zone and the trendline resistance. Since we are expecting a rate hike from the BoC, it simply goes to lend an extra confirmation to the likelihood of a bearish reaction on GBPCAD all the way to the 50-day moving average or the trendline support.
Analyst’s Expectations:
Direction: Bearish
Target: 1.68688
Invalidation: 1.71429
CADJPY is one very volatile commodity and would most likely make the most movement as a result of the news. My target here is the demand zone close to the pivot level at the top of the price movement.
Analyst’s Expectations:
Direction: Bullish
Target: 108.469
Invalidation: 105.295
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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