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 fee cuts for 2024 and
  the financial projections had been upgraded with development and inflation greater and the
  unemployment fee decrease.
• The US CPI beat expectations for the third
  consecutive month, whereas the US PPI got here in step with forecasts.
• The US NFP beat expectations throughout the board
  though the typical hourly earnings got here in step with forecasts.
• The US ISM Manufacturing PMI beat expectations by an enormous margin with
  the costs element persevering with to extend, whereas the US ISM Companies PMI missed with the worth index dropping to
  the bottom stage in 4 years.
• The market now expects the primary fee 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 of a reduce in June if the pattern stays
  intact.
• The most recent Canadian CPI missed expectations throughout the
  board with the underlying inflation measures falling.
• On the labour market aspect, 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 fee
  reduce in June.

USDCAD Technical Evaluation –
Day by day Timeframe

On the day by day chart, we are able to see that USDCAD broke
by means of the important thing 1.3620 resistance following
one other scorching US CPI report and prolonged the rally above the higher sure of the
channel. This has opened the door for a rally into the 1.3862 resistance, so
the patrons will search for dip-buying alternatives on the decrease timeframes. The
sellers, then again, will need to see the worth breaking key ranges to
place for brand spanking new decrease lows.

USDCAD Technical Evaluation –
4 hour Timeframe

On the 4 hour chart, we are able to see that the worth
appears to be like to be struggling a bit sustaining the bullish momentum after such a
robust run. From a danger administration perspective, the patrons could have a lot
higher danger to reward setups across the 38.2% Fibonacci retracement stage
and the 61.8% Fibonacci stage the place there’s additionally the trendline for confluence. The
sellers, then again, will search for breaks under these ranges to pile in
and place for brand spanking new decrease lows.

USDCAD Technical Evaluation –
1 hour Timeframe

On the 1 hour chart, we are able to see that the
newest leg greater is diverging with
the MACD, which
is usually an indication of a weakening momentum usually adopted by pullbacks or
reversals. On this case, it could possibly be a sign for a pullback into the bottom of
the divergent formation across the 1.3660 stage the place we have now additionally the 38.2%
Fibonacci stage. That’s the place we are able to count on the patrons to step in with a
outlined danger under the extent to place for a rally into new highs. The
sellers, then again, will search for a break decrease to place for a drop
into the trendline.

Upcoming Occasions

Immediately we conclude the week with the College of
Michigan Shopper Sentiment Survey.