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Usdcadsell

USD/CAD Reacts to CPI, Debt Ceiling Woes Two big events affecting the USD/CAD pair include the CPI reading from Canada yesterday as well as the ongoing debt ceiling crisis in the US. In April, the monthly Canadian headline CPI surged by 0.7%, resulting in an annual rate of 4.4% compared to the previous 4.3%. This increase exceeded the consensus estimates by three-tenths of a percent in both instances. Consequently, the USD/CAD experienced a 0.4% decrease, reaching 1.3404, before rebounding to a high of 1.3535 USD/CAD has now also breached its 200-day simple moving average on the downside, closing below it to reinforce the bearish signal. Strengthening this assertion is that the Bank of Canada had recently put a halt to its tightening campaign, having raised interest rates by 425 basis points since March 2022. However, they indicated that this pause was dependent on the inflation outlook aligning with the forecasted trajectory. It is unlikely that this week's CPI data meets this requirement. Offsetting the positive news for the Canadian dollar is the prevailing optimism in the United States regarding the government's ability to avoid defaulting on its debt. Following emergency discussions at the White House, President Joe Biden and Republican leaders cautiously expressed hope for a potential agreement to raise the US debt ceiling. The agreement must be reached and approved by both houses of Congress before the federal government exhausts its funds to cover expenses, which could occur as soon as June 1 (only two weeks away). Despite House of Representatives Speaker Kevin McCarthy stating that the two parties remain considerably apart, he believes that a deal could be achieved by the end of the current week.
by BlackBull_Markets
USDCAD: Nice entry for Buy-er!Fundamental Overview If the Federal Reserve meeting were held today, it is likely that they would maintain the current interest rates due to the ongoing uncertainty surrounding the banking sector. However, it's important to note that market conditions can change rapidly. If the upcoming weekend remains stable without any urgent need to rescue failing banks, there is a good chance of a 25 basis points rate hike. The Federal Reserve tends to increase rates until economic instabilities arise. In the case of only SVB, persistently high inflation could trigger further rate hikes. This would result in a stronger US Dollar, which could eventually lead to a decline in stock markets once the relief rally surrounding no new bank failures subsides. Plan trade in the intro
Long
by Sphyn-Trader