USDCAD has remained buoyant, posting a one-month high of 1.2913 yesterday before retreating to the lower 1.2800s. Read on as this 2 May USDCAD Fundamental Outlook mentions what contributed to the rebound.
2 May, HotForex – The move extended a rebound from mid-April two-month low at 1.2527. A correction in oil prices, which have descended back under $68.0 in the WTI benchmark market after making a 40-month high at $69.56, along with a generally firmer bias in the U.S. dollar and associated rise in the U.S.
2 May USDCAD Fundamental Outlook
Treasury yields have driven the rebound in USD-CAD. The Canadian dollar had already been coming off the boil in the wake of the April BoC policy meeting, as the statement indicated that the central bank would maintain its cautious stance on future policy changes, which remain data dependent.
The latest price action in USDCAD has negated the downside trend that had been in play over the prior three weeks, from levels near 1.3100.
The move overnight has offered three entries on the Crossing EMA H1 Strategy we discuss in our Webinars, 12;00 last night, 05;00 this morning and again at 10;00 this morning as the trend wound down for a net gain of around 70 pips. The 200-period moving average, S2 and the psychological 1.2800 appear to be finally providing some support with the 11:00 candle yet to complete.
This article about 2 May USDCAD Fundamental Outlook was written by Stuart Cowell, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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