The GDP data of the first quarter, better than expected, provided a small impulse to CAD on Friday. The data saw a slight revaluation of the swaps for the Boc’s policy decision on Wednesday and a couple of Canadian banks changed their prognosis of a cut to maintain – in line with the opinion of Scotia that there will be no changes, says Shaun Osborne, head of FX of Scotiabank.
Boc is expected to maintain Wednesday
“In the background, the data of the first quarter were less impressive and the growth prospects remain weak – the preliminary indications for the April GDP indicate an increase of 0.1%. Even so, in the midst of all the uncertainty about trade and tariff Minister Carney will be pressing for the liberalization of intra-pro-rowing trade to help compensate for the impact of US tariffs on meetings with the Canadian prime ministers today.
“After fighting to keep the impulse through the USD support in 1,3745/50 last week, the CAD begins the new week again below 1.37 and pushing the USD to new marginal minimums of the cycle (the lowest since the beginning of October). The widest bearish trend in the USD can be accelerating a little, the graphics suggest. Negative prices for the USD forming last week and the oscillators of intimate, daily and weekly trend remain negative for the USD. ”
“That maintains the technical risks clearly focused on the decline for the USD/CAD and should mean a solid resistance to any USD rebound to 1,3850/1.39 – if the USD can get there. The support at a minimum of 1,3685 last week is under pressure and there is little below there before a return fall to 1.34/1.35.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
