The USDCAD pair started falling after Canada released better-than-expected jobs numbers. The trend continued until yesterday. How is the trading currently? Could the pair resume the downward move? Gain insight into this 12 July USDCAD Fundamental Expectations Analysis.
12 July, OctaFX – The Canadian dollar jumped against the US dollar after the Bank of Canada made its interest rate decision. Shortly afterwards the US dollar took control and the pair reached the highest level since July 3.
Canadian GDP Growth Expectations
This reaction was because of the monetary policy statement from the BOC, which raised serious concerns about the ongoing trade conflict between the United States and Canada.
Officials were worried that the trade conflict would affect the rate of economic growth, which will, in turn, affect the pace of normalization. For this year, officials expect the Canadian GDP to grow by 1.8%, which will be followed by a 2.0% increase in 2020 and a 1.9% increase in 2021.
12 July USDCAD Fundamental Expectations Analysis
On Friday, the USDCAD pair started falling after Canada released better-than-expected jobs numbers. The trend continued until yesterday, when the pair reached an intraweek low of 1.3062.
Today, the pair moved higher after the BOC lowered expectations for further hikes. As shown below, the current price is along an important diagonal support level and is in line with the 50-day moving average. It is also closer to the peak of the symmetrical triangle pattern.
There is a likelihood that the pair could resume the downward move if it crosses the support level shown below.
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