USDCAD largest decline of the week

Failed rebound keeps pressure on the pair: Chart Updated

Charts (5)

The S&P 500 closed up 3.84% last week, lifted by Semiconductors & Semiconductor Equipment (+6.21%), Materials (+5.12%) and Energy (+4.97%) sectors. 

On last week's economic data front: 

Regarding jobs data, Initial Jobless Claims declined to 840K for the week ending October 3rd (820K expected), from a revised 849K in the week before. Continuing Claims dropped to 10,976K for the week ending September 26th (11,400K expected), from a revised 11,979K in the prior week. Job Openings fell to 6.49 million jobs on month in August (6.50 million jobs expected), compared to a revised 6.70 million jobs in July.

The Mortgage Bankers Association's Mortgage Applications rose 4.6% for the week ending October 2nd, compared to -4.8% a week earlier. 

The Federal Open Market Committee's (FOMC) Meeting Minutes stated that on net, financial conditions have eased since the last Meeting. As equity prices have risen and the dollar continues to depreciate, the Fed believes that aggressive monetary and fiscal policy are needed to keep the recovery going strong as market participants still see significant risks ahead. 

The Trade Deficit increased to 67.1 billion dollars on month in August (66.2 billion dollars expected), from a revised 63.4 billion dollars in July, a level last reached in 2006. 

Job Openings fell to 6.49 million jobs on month in August (6.50 million jobs expected), compared to a revised 6.70 million jobs in July.

Finally, Wholesale Inventories rose 0.4% on month in the August final reading (+0.5% expected), compared to +0.5% in the August preliminary reading.

The USDCAD remains in the headlines as the USD fell 1.45% on the week against the CAD making it the largest percentage mover. Our downside target at the 1.3125 support area we mentioned yesterday has now been reached. We have tightened our stop-loss to 1.3265, just above the 50-day moving average which should act as resistance. We are still anticipating a continuation of the decline down towards the 1.30 low from September. 



Source: GAIN Capital, TradingView

Happy Trading

More from Forex

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.