USD

• The Fed left rates of interest unchanged as anticipated with a shift within the assertion that
  indicated the tip of the tightening cycle.
• The Abstract of Financial Projections confirmed a
  downward revision to Progress and Core PCE in 2024 whereas the Unemployment Fee
  was left unchanged. Furthermore, the Dot Plot was revised to point out three fee cuts
  in 2024 in comparison with simply two within the final projection.
• Fed Chair Powell did not push again towards the robust dovish pricing
  and even mentioned that they’re targeted on not making the error of holding charges
  excessive for too lengthy, which means a fee lower coming quickly.
• The US CPI final week got here in keeping with expectations
  with the disinflationary progress persevering with regular. This was additionally confirmed by
  the US PPI the day after the place the info missed
  estimates.
• The labour market has been displaying indicators of
  weakening these days however we acquired some robust releases not too long ago with the US Jobless Claims and the NFP coming
  in strongly.
• The US Retail Gross sales final week beat expectations throughout the board as
  shopper spending continues to carry.
• The most recent ISM Manufacturing PMI missed expectations falling additional into
  contraction, whereas the ISM Companies PMI beat forecasts holding on in growth.
• The market expects the Fed to start out reducing charges
  in Q1 2024.

CAD

• The BoC saved the rate of interest regular at
  5.00% as anticipated with the standard caveat that
  it’s ready to boost the coverage fee additional if wanted.
• BoC Governor Macklem not too long ago has been leaning on a extra
  impartial facet and even began to speak about fee cuts though he stays
  unsure on the timing.
• The current Canadian CPI missed expectations throughout the
  board and the underlying inflation measures eased, which was a welcome
  growth for the BoC.
• On the labour market facet, the most recent report beat expectations
  though the unemployment fee ticked greater once more.
• The Canadian PMIs proceed to fall
  additional into contraction because the financial system retains on weakening amid restrictive
  financial coverage.
• The market expects the BoC to start out
  reducing charges in Q2 2024.

USDCAD Technical Evaluation –
Day by day Timeframe

On the day by day chart, we are able to see that USDCAD is
testing the important thing swing stage at 1.3382. The worth appears to be like a bit overstretched as
depicted by the space from the blue 8 transferring common. In such
cases, we are able to usually see a pullback into the transferring common or some
consolidation earlier than the subsequent transfer. The patrons are more likely to step in right here with
an outlined danger under the low to focus on a rally into the trendline.

USDCAD Technical Evaluation –
4 hour Timeframe

On the 4 hour chart, we are able to see that the pair has
been consolidating round the important thing stage not too long ago because the patrons are beginning to
pile in. Some aggressive sellers may lean on the purple 21 transferring common to
goal a break under the low and prolong the selloff into the 1.3225 stage. From
a danger administration perspective, the sellers could have a a lot better danger to
reward setup across the trendline the place they may even discover the confluence with the
earlier swing low stage and the 50% Fibonacci retracement stage.

USDCAD Technical Evaluation –
1 hour Timeframe

On the 1 hour chart, we are able to see that the
value has been diverging with
the MACD coming
into the important thing swing stage. That is usually an indication of weakening momentum typically
adopted by pullbacks or reversals. This ought to be one other layer of confluence
for the patrons with the trendline being the pure goal. A break above the
current resistance zone
on the 1.34 deal with ought to see the patrons improve their bullish bets into the
trendline. The sellers, alternatively, will attempt to defend the extent and
fold as quickly as the worth breaks greater.

Upcoming Occasions

This week is a bit empty on the info entrance as we head
into the Christmas holidays. At this time, we have now the Canadian CPI information. Tomorrow, we
will get the US Client Confidence report. On Thursday, we get the Canadian
Retail Gross sales and the US Jobless Claims information, whereas on Friday we conclude the
week with the US PCE report.