🔔🔔🔔USD/CAD news:
➡️ Moody's downgrade of the US sovereign credit rating from 'AAA' to 'AA1', along with rising expectations that the Federal Reserve (Fed) may soon begin cutting interest rates amid cooling inflation, has diminished the appeal of the US dollar (USD). The downgrade reflects growing concerns about fiscal distress and tariff-related distortions under former President Donald Trump’s administration.
➡️ On the other hand, dovish expectations for the Bank of Canada (BoC) have emerged following slower job growth and a rise in the unemployment rate in April, potentially putting pressure on the Canadian dollar (CAD) and weighing on the currency pair. Analysts at Capital Economics noted that US tariffs have ultimately weakened the Canadian economy, increasing the likelihood of more aggressive rate cuts by the BoC.
➡️ Additionally, falling crude oil prices may further undermine the commodity-linked Loonie. It’s worth noting that Canada is the largest oil exporter to the US, and lower oil prices typically have a negative impact on the CAD's value.
Personal opinion:
➡️ Trade negotiations are going positively and this is beneficial for USD. Moreover, it is gaining momentum after the FED's statement. Therefore, USD/CAD will continue to increase in price in the coming time and maintain the trend line
➡️ Analysis based on important resistance - support levels and Fibonacci combined with EMA and trend line to come up with a suitable strategy
Personal plan:
🔆Price Zone Setup:
👉Buy USD/CAD 1.3920 - 1.3910
❌SL: 1.3880 | ✅TP: 1.3965
FM wishes you a successful trading day 💰💰💰
➡️ Moody's downgrade of the US sovereign credit rating from 'AAA' to 'AA1', along with rising expectations that the Federal Reserve (Fed) may soon begin cutting interest rates amid cooling inflation, has diminished the appeal of the US dollar (USD). The downgrade reflects growing concerns about fiscal distress and tariff-related distortions under former President Donald Trump’s administration.
➡️ On the other hand, dovish expectations for the Bank of Canada (BoC) have emerged following slower job growth and a rise in the unemployment rate in April, potentially putting pressure on the Canadian dollar (CAD) and weighing on the currency pair. Analysts at Capital Economics noted that US tariffs have ultimately weakened the Canadian economy, increasing the likelihood of more aggressive rate cuts by the BoC.
➡️ Additionally, falling crude oil prices may further undermine the commodity-linked Loonie. It’s worth noting that Canada is the largest oil exporter to the US, and lower oil prices typically have a negative impact on the CAD's value.
Personal opinion:
➡️ Trade negotiations are going positively and this is beneficial for USD. Moreover, it is gaining momentum after the FED's statement. Therefore, USD/CAD will continue to increase in price in the coming time and maintain the trend line
➡️ Analysis based on important resistance - support levels and Fibonacci combined with EMA and trend line to come up with a suitable strategy
Personal plan:
🔆Price Zone Setup:
👉Buy USD/CAD 1.3920 - 1.3910
❌SL: 1.3880 | ✅TP: 1.3965
FM wishes you a successful trading day 💰💰💰
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✅ t.me/+Y9T5_BwC7_JhMWM1
Join now !!!!
Channel: signals - knowledge and FOREX comments
Join now !!!!
Channel: signals - knowledge and FOREX comments
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.