Daily Analysis For USD/CAD  11-05-2023

Daily Analysis For USD/CAD 11-05-2023

USD/CAD Analysis
USD/CAD
Economic Events and Scenario for USD/CAD
Economic Events : -
GMTEventImpactCurrency
00:01(United Kingdom) RICS House Price BalanceLowGBP
00:50(Japan) Foreign Bond InvestmentLowJPY
00:50(Japan) Stock Investment by ForeignersLowJPY
00:50(Japan) Foreign Bond InvestmentLowJPY
00:50(Japan) Stock Investment by ForeignersLowJPY
00:50(Japan) Bank Lending YoYLowJPY
00:50(Japan) Current AccountMediumJPY
00:50(Japan) BoJ Summary of OpinionsMediumJPY
02:00(Australia) Consumer Inflation ExpectationsLowAUD
02:30(China) Inflation Rate MoMMediumCNY
02:30(China) PPI YoYMediumCNY
02:30(China) Inflation Rate YoYHighCNY
04:35(Japan) 30-Year JGB AuctionLowJPY
05:30(Netherlands) Inflation Rate YoYLowEUR
05:30(Netherlands) Inflation Rate MoMLowEUR
05:30(Netherlands) CPILowEUR
06:00(Japan) Eco Watchers Survey CurrentLowJPY
06:00(Japan) Eco Watchers Survey OutlookLowJPY
07:00(Lithuania) PPI MoMLowEUR
07:00(Lithuania) PPI YoYLowEUR
08:00(China) Vehicle Sales YoYLowCNY
08:00(Slovakia) Construction Output YoYLowEUR
10:00(Malta) Industrial Production YoYLowEUR
10:10(Italy) 3-Year BTP AuctionLowEUR
10:10(Italy) 7-Year BTP AuctionLowEUR
11:00(Latvia) CPILowEUR
11:00(Latvia) Inflation Rate YoYLowEUR
11:00(Latvia) Inflation Rate MoMLowEUR
11:00(Portugal) Inflation Rate YoYLowEUR
11:00(Portugal) Inflation Rate MoMLowEUR
11:00(Portugal) CPILowEUR
11:00(Ireland) Inflation Rate MoMLowEUR
11:00(Ireland) Harmonised Inflation Rate MoMLowEUR
11:00(Ireland) Harmonised Inflation Rate YoYLowEUR
11:00(Ireland) Inflation Rate YoYLowEUR
11:00(Ireland) CPILowEUR
12:00(United Kingdom) BoE Interest Rate DecisionHighGBP
12:00(United Kingdom) BoE MPC Vote CutMediumGBP
12:00(United Kingdom) BoE MPC Vote UnchangedMediumGBP
12:00(United Kingdom) BoE MPC Vote HikeMediumGBP
12:00(United Kingdom) MPC Meeting MinutesMediumGBP
12:00(United Kingdom) BoE Monetary Policy ReportHighGBP
13:00(United Kingdom) NIESR Monthly GDP TrackerLowGBP
13:00(Euro Area) ECB Schnabel SpeechLowEUR
13:30(United States) Jobless Claims 4-week AverageHighUSD
13:30(United States) Continuing Jobless ClaimsHighUSD
13:30(United States) Initial Jobless ClaimsHighUSD
13:30(United States) Core PPI YoYLowUSD
13:30(United States) Core PPI MoMMediumUSD
13:30(United States) PPI YoYLowUSD
13:30(United States) PPI MoMHighUSD
15:15(United States) Fed Waller SpeechMediumUSD
15:30(United States) EIA Natural Gas Stocks ChangeLowUSD
16:00(Kosovo) Inflation Rate YoYLowEUR
16:30(United States) 8-Week Bill AuctionLowUSD
16:30(United States) 4-Week Bill AuctionLowUSD
18:00(United States) 30-Year Bond AuctionLowUSD
18:30(Euro Area) ECB Guindos SpeechHighEUR
23:30(New Zealand) Business NZ PMIMediumNZD
23:45(New Zealand) Visitor Arrivals YoYLowNZD

Today's Scenario: - The USD/CAD has regained some ground after yesterday's losses and is currently trading within the weekly range near 1.3400. It has moved higher to around 1.3385, possibly due to a decline in oil prices and the US dollar stabilizing after yesterday's inflation-driven losses, as traders await the US Producer Price Index (PPI) release for April. However, the overall sentiment for the pair remains bearish due to the dovish stance of the US Federal Reserve, especially following yesterday's underwhelming US Consumer Price Index (CPI) report.

Buy Scenario: - The USD/CAD initially rose to a high of 1.3397 during the European session before falling after the release of US data due to the weakness of the US Dollar. Later, it recovered as the Greenback regained strength. The Dow Jones has fallen by 0.39%, while the Nasdaq has managed to secure a gain of 0.40%. The US 10-year Treasury yield stands at 3.45%, while the 2-year yield is falling at 3.93%.
If the USD/CAD continues to rebound, it could face resistance at the 1.3400 level, and a successful breakthrough above this level could lead to further potential for gains. Till we do not advise to buy USD/CAD.

Sell Scenario: - Conversely, if it drops below 1.3350, the Loonie is likely to strengthen, indicating a test of the daily low at 1.3333, followed by the May low at 1.3312. Till we do not advise to sell USD/CAD.

Support and Resistance Level: -
SupportResistance
S1 1.3333-R1 1.3413
S2 1.3294-R2 1.3454
S3 1.3254-R3 1.3493

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