Daily Market Insights

 
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9/5/2017
USD/CAD

Canadian Dollar Looks for Recovery

The US Bureau of Labor Statistics released their latest labour market data which under the total non-farm employment from the payroll survey rose in April up the previous month. The unemployment rate fell from 4.5% to 4.4%

The estimate of employment change from the Labour Force Survey where providing positive as well. Now that the French election risk is completed; the market are looking for the Federal Reserve Board's expectations while focusing on this week's key economic data releases. Friday's retail sales and CPI data will important. US Fed may tighten rates more sooner than we expected.

Housing starts are trending higher for April 2017 as against in March 2017, according to Canada Mortgage and Housing Corporation (CMHC). New housing construction increased in Canada, The increase in the trend was mainly due to construction. Overall, new home construction thus far has been building some huge momentum as both new single-detached and townhome starts trended meets more heights.

The gains were particularly good from the rental segment, while construction getting under way on housing units. Overall, there has been good supported by an demand in housing front and a decrease for the unsold numbers.

Intraday bias in USD/CAD remains bearish with 1.374 resistances intact. Though the price are bounding of the 50EMA, a deeper decline is still expected for the pair as long as above resistances hold the area. Thus, we’d expect the intraday bias to remain bearish with rejection occurring on the resistance area. The near term bearish reversal has taken place and turns the outlook to continue the original downside bias with price action rejection and closed below the new found trend line there is clear indication of trend reversal shifting the momentum. Current development suggest that in the medium term a further low is expected and focus shall be at 1.3646. A break here should make lower levels oscillator above the 50.0 level and have started the required shift in momentum to indicate pair may see some correction in the upcoming session.

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