- The USD/CAD weekly forecast reveals a slight rebound within the greenback.
- Trump is able to implement extra tariffs, together with on cars.
- Canadian information revealed strong underlying inflation and upbeat gross sales.
The USD/CAD weekly forecast signifies a modest rebound of the greenback following Trump’s proposal for car tariffs.
Ups and downs of USD/CAD
The USD/CAD pair had a bullish week however remained close to final week’s lows because the greenback remained fragile. On the identical time, information from Canada eased strain on the Financial institution of Canada to decrease borrowing prices.
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Information that Trump will quickly meet China’s president raised hopes for a commerce deal between the 2 international locations, boosting danger sentiment. Nonetheless, Trump is able to implement extra tariffs, together with these on cars, to help the greenback.
In the meantime, in Canada, information revealed strong underlying inflation and upbeat gross sales. Because of this, BoC charge minimize bets fell.
Subsequent week’s key occasions for USD/CAD
Merchants will watch key studies from the US, together with gross home product and core sturdy items. In the meantime, Canada will launch its GDP report.
The US GDP report will present the state of the financial system and information the Consumed future coverage strikes. An even bigger-than-expected growth will present sturdy progress, supporting the Fed’s present stance of warning. The greenback would rally on this case, pushing USD/CAD increased. However, if growth is weak, the Fed may really feel extra strain to decrease borrowing prices.
The identical applies to Canada’s GDP, which can information the outlook for Financial institution of Canada charge cuts.
USD/CAD weekly technical forecast: Bears eye the 1.3802 help
On the technical aspect, the USD/CAD value has reversed and located its footing beneath the 22-SMA. On the identical time, the RSI trades beneath 50, indicating robust bearish momentum. The earlier bullish pattern reversed after the RSI made a bearish divergence, indicating weak momentum. On the identical time, the value made a bearish engulfing candle, resulting in a break beneath the 22-SMA and the 1.4300 help stage.
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Nonetheless, the decline has paused, and the value may retest the 22-SMA and the 1.4300 stage as resistance. If it holds agency and the value continues decrease, it’ll verify a brand new bearish pattern. On this case, bears will goal the 1.3802 help stage.
Nonetheless, if bulls handle to push the value again above the SMA, it’d enter a interval of consolidation or resume the bullish pattern.
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