Outlook pessimistic for USD/CAD, focus on 1.3190 area

The US dollar is currently in a period of flux, not least due to the ongoing questions about the state of the country’s economy.

It is facing an especially pessimistic outlook in its pair with the Canadian dollar, and the overarching trends are not looking positive.

The USD/CAD pair scaled to a very valuable position back at the end of Q1 2020 when global forex traders moved to the greenback in their droves.

However, since the coronavirus pandemic’s economic impact was lessened to some degree, the currency pair has – like many of the dollar’s pairs – declined somewhat in value.

Looking back over the price chart in recent days, movements appear to show the pair locked between the 1.3133 level and the 1.3245 region.

Strategists have highlighted the 1.3190 level as a particular point to watch.

According to some, a rise for the currency that surpasses that level could then lead to 1.3245 or beyond.

However, this is far from certain – some interpretations of the price chart indicate that the ongoing crude oil price rises could lead to a decline in pair values.

Canada is a major exporter of oil, and the price of the commodity forms a key part of the currency’s performance.

When the price of oil goes up, the expected performance of the Canadian dollar can often also rise.

In terms of the economic calendar, meanwhile, Thursday of this week is set to see a release focusing on Canada’s currency account levels for Q2 2020.

This is due to come out at 12:30pm GMT.

At 3:15pm GMT on Thursday, meanwhile, there will be a speech from the Governor of the Bank of Canada, Tiff Macklem.

Friday is also set to be a busy day for the Canadian dollar.

An annualised gross domestic product release for Q2 2020 is due out at 12:30pm GMT.

This is set to show a quarter-on-quarter change from -8.2% to -39.6%, which is a significant change.

There will also be a gross domestic product release for the month of June in particular out in the same time slot.

This is widely expected to show a change from 4.5% to 5.6%.

The US dollar, meanwhile, will also have its own economic calendar challenges to contend with as the week unfolds.

The main one is likely to be the Jackson Hole Symposium, which will bring together a variety of central bankers from around the world to discuss issues relating to monetary policy.

However, other key events are also scheduled in.

A release looking at personal income levels for July will come out at 12:30pm GMT on Friday.

This is expected to show a month-on-month change from -1.1% to -0.2%.

The Chicago Purchasing Managers’ Index for August is also expected out on Friday.

This key measure of confidence in the business world is expected at 1:45pm GMT.

Forex Fraud Analyst Team

Share

Tweet

Safest Forex Brokers 2023

	Broker	Info	Best In	Customer Satisfaction Score
#1	73 % of retail CFD accounts lose money Founded: 2014	Global Forex & CFD Broker	Best Trading Conditions Visit broker	4.9
#2	Your capital is at risk Founded: 2014	Global Forex Broker	BEST SPREADS Visit broker	4.8
#3	Your capital is at risk Founded: 2006	Globally regulated broker	BEST CUSTOMER SUPPORT Visit broker	4.9
#4	86% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008	Global CFD Provider	Best Trading App Visit broker	5
#5	Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010	Global Forex Broker	Low minimum deposit Visit broker	4.9
#6	67% of CFD traders lose Founded: 2007	Global CFD & FX Broker	ALL-INCLUSIVE TRADING PLATFORM Visit broker	4.9
#7	Your capital is at risk Founded: 2009, 2015 and 2017	Global Forex Broker	Low minimum deposit Visit broker	5
#8	Your capital is at risk Founded: 2006	CFD and Cryptocurrency Broker	CFD and Cryptocurrency Visit broker	5

Forex Fraud Certified Brokers

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.