Global macro overview for 19/04/2018
April 19, 2018 11:21 amVideo
Latest News
- Euro will return to parity April 12, 2024
- Trading Signals for ETH/USD (Ethereum) for April 12-15, 2024: buy above $3,435 (3/8 Murray – 200 EMA) April 12, 2024
- EUR/USD. Analysis for April 12th. The euro falls down under the pressure of the news background April 12, 2024
- GBP/USD. Analysis for April 12th. A significant event: the pound fell below the 25-figure April 12, 2024
- Trading Signals for EUR/USD for April 12-15, 2024: buy above 1.0620 (-2/8 Murray – rebound) April 12, 2024
- GBP/USD: trading plan for the US session on April 12th (analysis of morning deals). The pound followed the euro April 12, 2024
- EUR/USD: trading plan for the US session on April 12th (analysis of morning deals). The euro continues to fall April 12, 2024
- EUR/USD and GBP/USD: Technical analysis on April 12 April 12, 2024
- EUR/USD: Dovish signals from the ECB and rising PPI April 12, 2024
- EUR/USD. April 12th. ECB meeting: confidence in rate cut increased in June April 12, 2024
- GBP/USD. April 12th. British economy continues to stagnate April 12, 2024
- Analysis and trading tips for EUR/USD on April 12 (US session) April 12, 2024
- Analysis and trading tips for USD/JPY on April 12 (US session) April 12, 2024
- Analysis and trading tips for GBP/USD on April 12 (US session) April 12, 2024
- Weekly Forex Outlook: 12/04/2024 – More inflation data on the way as rate cut bets in disarray April 12, 2024
- Technical Analysis – GBPUSD ticks down to new 5-month low April 12, 2024
- Bitcoin holds above $70,000 as halving event looms – Crypto News April 12, 2024
- Week Ahead – More inflation data on the way as rate cut bets thrown into disarray April 12, 2024
- Bitcoin will thrive during supply crisis April 12, 2024
- Technical Analysis – EURUSD plummets after US CPI and ECB decision April 12, 2024
The Bank of Canada maintained in the statement that it intends to remain cautious with regard to future adjustments of monetary policy, taking into account the incoming data. This cautious approach is perceived as slightly dovish, as more satisfaction was expected from the weakening of risks around negotiations on the Nafta agreement, hence the USD/CAD jump above 1.26.
In the Monetary Policy Report, a large part was devoted to growth prospects with less focus on inflation. For example, the bank no longer expects a positive contribution of exports to GDP (0 percent against earlier forecasts of 0.6%). So this part has a bit dove overtones because it gives the field a less aggressive tightened in the following months. On the other hand, the increased GDP forecasts smuggle some optimism about the economic outlook for the future. The fact that BoC remains in the cycle of increases, confirms leaving the sentence in the statement that “over time higher interest rates will be justified”.
To sum up, for today BoC is disappointing with high expectations, but in the medium term, the bank should be on its way to a hike in July. From the CAD point of view, the profit from the rally from 1.31 has now a dominant influence on the course, but when the dust falls CAD still remains the currency with good prospects for the rest of the year.
Let’s now take a look at the USD/CAD technical picture at the H4 time frame. The market has broken above the technical resistance at the level of 1.2620 and made a new, local marginal high at the level of 1.2657. Currently, the price is testing the support from above, but the outlook is still bullish. If the market will continue to bounce, then the next target might be at the level of 1.2730. The positive and strong momentum after the breakout is suporting the short-term bullish outlook.
The material has been provided by InstaForex Company – www.instaforex.com
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