Even with the greenback’s huge strikes recently, USD/CAD continues to be caught in a variety!

Will it bounce off these inflection factors once more?

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out EUR/USD breaking out of its channel forward of the ECB resolution. Remember to take a look at if it’s nonetheless a very good play!

And now for the headlines that rocked the markets within the final buying and selling classes:

Recent Market Headlines & Financial Knowledge:

FOMC hiked rates of interest by 0.25% as anticipated from 5.00% to five.25%, as policymakers be aware that inflation stays above objective

Fed head Powell famous that there was sturdy assist for rate of interest hikes and {that a} pause was not but mentioned throughout their assembly

Powell additionally talked about that policymakers imagine they’re approaching the tip of their tightening cycle however that chopping wouldn’t be acceptable given inflation tendencies

U.S. ISM providers PMI improved from 51.2 to 51.9 vs. 51.8 forecast in April, as new orders and costs paid indices elevated whereas employment part dipped

U.S. regional financial institution PacWest is reportedly contemplating “strategic choices” akin to a sale of its belongings

New Zealand ANZ commodity costs slipped 1.7% month-over-month in April vs. earlier 1.3% acquire, as exporter freight costs proceed to melt

Australian commerce surplus widened from 14.1 billion AUD to fifteen.27 billion AUD in March vs. estimated 13 billion AUD determine, because of 4% improve in exports

Chinese language Caixin manufacturing PMI fell from 50.0 to 49.5 in April as an alternative of holding regular, as enter prices and promoting costs tumbled at their quickest tempo in seven years

Value Motion Information

Overlay of USD Pairs 15-min Charts by TV

The FOMC assertion stored the U.S. greenback in selloff mode, even because the central financial institution hiked rates of interest and averted hinting at a pause anytime quickly.

The Buck slid decrease throughout the board, accelerating its decline in opposition to the Japanese yen as risk-off flows remained in play.

In the meantime, the lower-yielding yen managed to strengthen in opposition to the remainder of its rivals, as markets grew more and more involved a few doable U.S. recession and the doubtless collapse of one other regional financial institution.

The greenback selloff prolonged till the early Asian hours earlier than a little bit of profit-taking allowed the U.S. forex to ease off its lows.

Upcoming Potential Catalysts on the Financial Calendar:

ECB financial coverage assertion at 12:15 pm GMT
ECB press convention at 12:45 pm GMT
Canadian Ivey PMI at 2:00 pm GMT
BOC Governor Macklem’s speech at 4:50 pm GMT

Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️

USD/CAD 15-min Foreign exchange Chart by TV

This foreign exchange pair continues to be cruising calmly inside its good ol’ vary, probably as a result of greenback and Loonie merchants are holding out for the U.S. and Canadian jobs studies tomorrow.

USD/CAD is now closing in on the vary resistance simply barely under R1 (1.3640) of the Normal Pivot Factors.

If this holds, worth might tumble again all the way down to the underside at 1.3580, which occurs to line up with S1.

Nonetheless, if the Buck suffers one other wave decrease throughout the board, we would see a variety breakdown that takes USD/CAD all the way down to the subsequent ground close to S3 (1.3530).

Remember to maintain shut tabs on the headlines, notably on any updates involving extra financial institution defaults, since these might imply extra draw back for the greenback.