USDCAD largest decline of the week

Failed rebound keeps pressure on the pair: Chart Updated

Charts (5)

The S&P 500 closed up 3.84% last week, lifted by Semiconductors & Semiconductor Equipment (+6.21%), Materials (+5.12%) and Energy (+4.97%) sectors. 

On last week's economic data front: 

Regarding jobs data, Initial Jobless Claims declined to 840K for the week ending October 3rd (820K expected), from a revised 849K in the week before. Continuing Claims dropped to 10,976K for the week ending September 26th (11,400K expected), from a revised 11,979K in the prior week. Job Openings fell to 6.49 million jobs on month in August (6.50 million jobs expected), compared to a revised 6.70 million jobs in July.

The Mortgage Bankers Association's Mortgage Applications rose 4.6% for the week ending October 2nd, compared to -4.8% a week earlier. 

The Federal Open Market Committee's (FOMC) Meeting Minutes stated that on net, financial conditions have eased since the last Meeting. As equity prices have risen and the dollar continues to depreciate, the Fed believes that aggressive monetary and fiscal policy are needed to keep the recovery going strong as market participants still see significant risks ahead. 

The Trade Deficit increased to 67.1 billion dollars on month in August (66.2 billion dollars expected), from a revised 63.4 billion dollars in July, a level last reached in 2006. 

Job Openings fell to 6.49 million jobs on month in August (6.50 million jobs expected), compared to a revised 6.70 million jobs in July.

Finally, Wholesale Inventories rose 0.4% on month in the August final reading (+0.5% expected), compared to +0.5% in the August preliminary reading.

The USDCAD remains in the headlines as the USD fell 1.45% on the week against the CAD making it the largest percentage mover. Our downside target at the 1.3125 support area we mentioned yesterday has now been reached. We have tightened our stop-loss to 1.3265, just above the 50-day moving average which should act as resistance. We are still anticipating a continuation of the decline down towards the 1.30 low from September. 



Source: GAIN Capital, TradingView

Happy Trading

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.