USD

• The Fed left rates of interest unchanged as anticipated on the final assembly with principally no
  change to the assertion. The Dot Plot nonetheless confirmed three price cuts for 2024 and
  the financial projections have been upgraded with development and inflation larger and the
  unemployment price decrease.
• The US Q1 GDP
  surprisingly missed expectations though the core parts confirmed a robust
  economic system, nonetheless. The Core PCE although shocked to the upside pushing price
  cuts additional away.
• The US CPI beat expectations for the third
  consecutive month, whereas the US PPI got here consistent with forecasts.
• The US NFP beat expectations throughout the board
  though the common hourly earnings got here consistent with forecasts.
• The US PMIs missed expectations in April with the
  commentary citing decrease inflationary pressures but additionally elevated layoffs.
• The market expects the primary price reduce in
  September.

CAD

• The BoC left rates of interest unchanged at
  5.00% as anticipated altering a line within the assertion that indicated much less concern
  about inflation and thus the potential for a reduce in June if the pattern stays
  intact.
• The most recent Canadian CPI got here consistent with expectations though
  the underlying inflation measures eased additional.
• On the labour market facet, the newest report missed
  expectations throughout the board though we noticed an uptick in wage development which is
  one thing that the BoC is watching carefully.
• The Canadian Manufacturing PMI
  improved barely in March whereas the Companies PMI weakened additional. Each the
  measures stay in contractionary territory.
• The market expects the primary price
  reduce in June.

USDCAD Technical Evaluation –
Day by day Timeframe

On the day by day chart, we are able to see that USDCAD is
getting nearer and nearer to the important thing assist zone
across the 1.3620 degree the place we are able to additionally discover the 61.8% Fibonacci retracement degree
for confluence. That
would be the first alternative for the consumers adopted by the second round
the main trendline if the
worth have been to interrupt beneath the 1.3620 assist. The sellers, alternatively,
will hold pushing at each break decrease, and in case they handle to interrupt beneath
the trendline, the subsequent goal would be the 1.3225 low.

USDCAD Technical Evaluation –
4 hour Timeframe

On the 4 hour chart, we are able to see that the value
yesterday received rejected from the minor downward trendline because the sellers stepped
in to extend the bearish bets into new lows. The consumers might want to break
above the minor trendline and the 1.3730 resistance zone to show the pattern
round and begin focusing on new highs.

USDCAD Technical Evaluation –
1 hour Timeframe

On the 1 hour chart, we are able to see that we
have a minor resistance zone across the 1.3665 degree the place there’s additionally the purple
21 transferring common for
confluence. That is the place we are able to count on the sellers to step in once more with a
outlined danger above the resistance to extend the bearish bets into new lows.
The consumers, alternatively, will wish to see the value breaking larger to
place for a rally into the trendline and focusing on a break above it.

Upcoming Occasions

As we speak we conclude the week with the US PCE report.