Daily Market Insights

 
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11/5/2017
USD/CAD

Greenback gaining new highs

The unemployment rate has been on the slide and with The Federal Reserve's forecast for joblessness 4.5% from the end of 2017 – 2019 seems to be optimistic can this be the major reason for the interest rate hike in there next Open Market Committee meeting.

Fed's rate can impact the declining unemployment rate and there is the central bank mentioning the economy is getting close for a tipping point that may require more tightening.

Fed's current unemployment forecast seems to be under control until the next projections for Economic. The Fed will expect further declines in the unemployment rate with the growth for job are more than the necessary rate and keep the projection.

The Fed's rate also will make up the policy makers estimates for the really rate of unemployment and inflation projection, Fed's natural unemployment rate and inflation forecasts look vulnerable currently.

Policy makers have clearly indicated they are rethinking the process to lower their estimate of natural rate as growth and inflation since previous they were higher. FOMC participants consider to the possibility that inflation rate of unemployment is below there required percent and thus could be a dovish move.

Intraday bias in USD/CAD trading above 1.3655 level which gets good support base after bouncing of the 50EMA area that reinforces the expectations of continuing the bullish bias in the upcoming period, and the way is open to head towards the recently recorded top on the near term basis price provided new positive close above the level, to confirm its affection by the domination of the bullish bias in the near and medium period, to keep waiting for achieving the target at 1.3787 the price gets its positive momentum from stochastic which are on the rise to confirm its attempt to reach the previously suggested target to face the level. Pair trading on rebound found at latest trend line support hence, we’d be expecting resumption of larger up trend from current levels resistance turned support levels.

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