Signal #13 USD/CAD Execution | 04:32:48 (UTC) Thu Sep 9, 2021
Updated
The job market in the United States slowed significantly in August, worsened by difficulties in the leisure and hospitality sector, which coincided with another large coronavirus epidemic. According to nonfarm payrolls (NFP) statistics, the economy created just 235,000 jobs, far below the consensus expectation of 733,000 new hires and the lowest reading since January, when COVID-19 vaccines were just beginning. As a consequence of the job slowdown, the Fed has decided to be more careful before reducing asset purchases, which will almost certainly preclude a taper announcement in September.
The Fed's decision to maintain its present easing strategy may slow the rebound of US Treasury rates while also placing downward pressure on the dollar index as a whole. It's conceivable that this could boost the Canadian dollar (CAD) and push the USD/CAD exchange rate lower in the coming days, exacerbating the 400-plus-pip decline that started two weeks ago and is still going on. Despite the fact that the stars seem to be set for further USD depreciation, market mood must be monitored on a daily basis, as worries about air pockets in the US and Chinese economies may trigger a flight-to-safety reaction at any moment.
In any event, a risk-off period may increase volatility, have a negative effect on commodities linked to economic growth (such as oil), and have a negative impact on high-beta currencies such as the Canadian dollar. The Bank of Canada's interest rate announcement on Wednesday is another possible headwind for the CAD in the coming week. The institution may adopt a more cautious stance on the economy's recovery in light of the unexpected decline in GDP in the second quarter (Q2 GDP fell 1.1 percent annually, contrary to forecasts for 2.5 percent expansion), but no pyrotechnics are anticipated. With negative risks rising for the current quarter, we may see some dovish policy adjustments, as well as a realization that bridging the production gap would take longer than originally expected. In order to preserve its position ahead of the September 20 snap election, the bank, on the other hand, will abstain from making substantial adjustments to its projection. As a result, the October meeting, which will contain revised macroeconomic projections, may be more significant and market-moving.
Signal#:13
OrderType: Buy
Lot Size: 1.00
Entry: 1.26919
Alarm clock Expiration: -/--
Direct hit TakeProfit: 0.00000
Stop sign StopLoss: 0.00000
The Fed's decision to maintain its present easing strategy may slow the rebound of US Treasury rates while also placing downward pressure on the dollar index as a whole. It's conceivable that this could boost the Canadian dollar (CAD) and push the USD/CAD exchange rate lower in the coming days, exacerbating the 400-plus-pip decline that started two weeks ago and is still going on. Despite the fact that the stars seem to be set for further USD depreciation, market mood must be monitored on a daily basis, as worries about air pockets in the US and Chinese economies may trigger a flight-to-safety reaction at any moment.
In any event, a risk-off period may increase volatility, have a negative effect on commodities linked to economic growth (such as oil), and have a negative impact on high-beta currencies such as the Canadian dollar. The Bank of Canada's interest rate announcement on Wednesday is another possible headwind for the CAD in the coming week. The institution may adopt a more cautious stance on the economy's recovery in light of the unexpected decline in GDP in the second quarter (Q2 GDP fell 1.1 percent annually, contrary to forecasts for 2.5 percent expansion), but no pyrotechnics are anticipated. With negative risks rising for the current quarter, we may see some dovish policy adjustments, as well as a realization that bridging the production gap would take longer than originally expected. In order to preserve its position ahead of the September 20 snap election, the bank, on the other hand, will abstain from making substantial adjustments to its projection. As a result, the October meeting, which will contain revised macroeconomic projections, may be more significant and market-moving.
Signal#:13
OrderType: Buy
Lot Size: 1.00
Entry: 1.26919
Alarm clock Expiration: -/--
Direct hit TakeProfit: 0.00000
Stop sign StopLoss: 0.00000
Note
===== Position closed =====Signal#:13
OrderType: Buy
Symbol: USDCAD
OpenPrice 1.26919
StopLoss 1.2717
TakeProfit 0
🕓 Duration: 1 days and 7:0
Profit/Loss is: 24 PIPs (191.88 USD)
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