Instrument: USDCAD
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 1.27668 with take profit at 1.27817
Bearish Preference:
Sell position is envisaged if price trades below 1.27122 with take profit at 1.26976
Fundamentals:
No major fundamental
Comment:
USD/CAD remains pressured around a one-week low, despite being defensive around 1.2700 ahead of Thursday’s European session. In doing so, the Loonie pair stays on the back foot for the third consecutive day as prices of Canada’s key exports, namely WTI crude oil, refreshed its two-week top while the US dollar struggles to overcome the post-Fed losses. WTI crude oil seesaws around a two-week high, up 0.60% intraday to $108.15 by the press time. The black gold rose the most in three weeks the previous day and extended the gains amid initial Thursday’s trading as geopolitical headlines from the European Union (EU) hint at the supply crunch. The hike was hawkish and Fed futures are pricing in a higher chance of a 50 basis point hike at the June meeting. 77% priced for 50bps and 23% for a 75 basis point hike. Interest rates futures also suggest a 94% probability of an effective fed funds rate of at least 2.75% at year-end. The Fed anticipates that ongoing increases in the target range will be appropriate as the central banks if highly attentive to inflation risks.
Analysis: SCRUM Team