Greenback bears are getting again within the recreation currently!

Does this imply one other leg decrease for USD/CAD when the NFP is launched?

Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/USD’s pullback to a damaged vary backside. Remember to try if it’s nonetheless an excellent play!

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

Contemporary Market Headlines & Financial Information:

U.S. Challenger job cuts up from 175.9% year-over-year in April to 286.7%  in Might, as employers reduce 80,089 positions whereas hiring exercise slumped

ADP non-farm employment change slowed from 291K to 278K in Might vs. 173K estimate, with annual pay up 6.5% year-over-year

U.S. weekly preliminary jobless claims at 232K within the week ending Might 27 vs. 236K forecast and 230K earlier

ISM manufacturing PMI fell from 47.1 to 46.9 in Might to mirror sharper tempo of trade contraction, jobs part up from 50.2 to 51.4 to sign stronger progress whereas costs index fell 53.2 to 44.2

Fed official Harker identified that customers aren’t spending as a lot as they used to, so it is likely to be time to pause in June

EIA crude oil inventories put up shock 4.5 million barrel construct as an alternative of the estimated 1.2 million barrel draw, suggesting slower demand

New Zealand abroad commerce index fell 1.5% quarter-over-quarter in Q1 as anticipated, following earlier downgraded 1.5% acquire

BOJ Governor Ueda reiterated that inflation might nonetheless decelerate, really easy financial coverage might be maintained, larger inflation development is probably going however it’ll take time

Value Motion Information

Overlay of USD Pairs 15-min

Greenback weak point got here again with a vengeance in the course of the earlier New York buying and selling session, as main U.S. jobs indicators turned out combined whereas some Fed officers reiterated the necessity to “skip” mountaineering this month.

The Dollar chalked up its sharpest losses in opposition to the Aussie and the Kiwi, with the hunch carrying on till the early Asian session, whereas different greenback pairs moved sideways.

French industrial manufacturing at 6:45 am GMT
U.S. Might employment scenario (NFP) report at 12:30 pm GMT

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

USD/CAD 15-min Foreign exchange Chart by TV

Is {that a} bearish flag I’m seeing on the short-term chart of USD/CAD?

One other spherical of greenback weak point might spark a selloff that’s the identical peak because the flag’s mast, presumably taking the pair down by a minimum of 100 pips.

This would possibly drag value to S2 (1.3340) which is simply barely beneath the 1.3350 minor psychological assist.

Greenback merchants are prone to maintain their breaths till the discharge of the Might 2023 NFP report, as downbeat outcomes might assist the potential for a Fed pause later this month.

If the outcomes come consistent with estimates or barely larger, although, USD/CAD might pull as much as close by resistance ranges on the pivot level (1.3490) or the falling development line close to R1 (1.3540).