Market News & Analysis


Top Story

USD/CAD Stays Subdued

Last Friday, the April U.S. jobs report came out not as ugly as expected (a reduction of 20.500 million Nonfarm Payrolls vs. -22.000 million expected, jobless rate soaring to 14.7% vs. 16.0% expected), the Canadian economy shed 1.99 million jobs (vs. -4.00 million expected) with a jobless rate of 13.0% (vs. 18.1% expected) --.also not as grim as expected.

As virus-hit countries and U.S. states gradually relax coronavirus-induced restrictions and reopen their economies, market sentiment has been boosted.

And the rush to obtain U.S. dollar funding during the max of market distress (as seen in March and early April) has largely faded.

On an Intraday 30-minute Chart, USD/CAD remains on the downside after retreating from a high of 1.4173 seen on May 7.


Source: GAIN Capital, TradingView


In fact, USD/CAD is trading within a Bearish Channel having confirmed a Bearish Pattern of Lower Highs.


Currently it has swung to the Lower Bollinger Band keeping the intraday outlook as bearish.

A Key Resistance is located at 1.3945 (around the Upper Bollinger Band).

Trading below this key Resistance, USD/CAD is expected to Seek Support at 1.3880 and 1.3845 on the downside (both levels last seen at end-April).

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.