Canadian Inflation Affects the Loonie (🇺🇸💵/🇨🇦💵)
Important April and year-over-year inflation data from Canada will be released this afternoon, which according to Statistics Canada has seen a housing production crisis unheard of in the country, leading to a runaway increase in housing prices and access to housing. It has also reflected a very strong increase in inflation in rents, transportation, and the shopping basket, as well as in other sectors so it remains to be seen if this inflation slows down slightly.
This is in addition to statements from the New York and Richmond Fed with President John C Williams and Tom Barking, and Fed Governor Christopher J. Waller, former president of the Federal Reserve in St. Louis. In principle the three are going to talk about the scenario of U.S. economic resilience, prospects for housing price dynamics and a positive outlook for the country. This facilitates the continuation of what was already being talked about as a possible rate cut and "quantitative tightening" scenario that the markets have been anticipating with this lack of dynamism in recent weeks in line with the "sell in May and go away".
Looking at the chart we could already see a slight correction on April 16 coinciding with the Fed's publications, this time it is foreseeable that the yankee greenback will try to gain ground on the Canadian Loonie. It is therefore possible to anticipate a possible rise to the highs to test a new test in which it could be trying to cross the area of 1.38980 Canadian dollars per dollar. But currently, the right signals are not being given, the RSI is in the mid 50.84% zone and the price bell shape has generated a mono-bell in 1-day timeframe, so its mid price zone is in the 1.34872 zone. If the price reverses to that zone, a downward movement would be possible, this would be visible if the Canadian economy improves against the US economy.
Ion Jauregui - AT Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
This is in addition to statements from the New York and Richmond Fed with President John C Williams and Tom Barking, and Fed Governor Christopher J. Waller, former president of the Federal Reserve in St. Louis. In principle the three are going to talk about the scenario of U.S. economic resilience, prospects for housing price dynamics and a positive outlook for the country. This facilitates the continuation of what was already being talked about as a possible rate cut and "quantitative tightening" scenario that the markets have been anticipating with this lack of dynamism in recent weeks in line with the "sell in May and go away".
Looking at the chart we could already see a slight correction on April 16 coinciding with the Fed's publications, this time it is foreseeable that the yankee greenback will try to gain ground on the Canadian Loonie. It is therefore possible to anticipate a possible rise to the highs to test a new test in which it could be trying to cross the area of 1.38980 Canadian dollars per dollar. But currently, the right signals are not being given, the RSI is in the mid 50.84% zone and the price bell shape has generated a mono-bell in 1-day timeframe, so its mid price zone is in the 1.34872 zone. If the price reverses to that zone, a downward movement would be possible, this would be visible if the Canadian economy improves against the US economy.
Ion Jauregui - AT Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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