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USD/CAD Pulling Back after a US and Canadian GDP Shake

US GDP at 0.1% in Q1 (annualized) missed forecast and was the at slowest growth rate since Q4 2012. This was really bad considering that without Obamacare spending, the GDP rate would have been negative.

Canadian GDP m/m was 0.2% in February. This is not a timely release. It was inline with expectations, but fell from the 0.5% in January. This is not an impressive report, but was relatively better than the US counterpart.

The USD/CAD was in a sharp slide during the 4/29 session breaking below 1.10 and coming down to the 1.0942 level before finding an intra-session base. You can say there's a double bottom in the 1H chart.


(usdcad 4/30)

1.10:
Because of the heavy downswing, a pullback should have limited expectation in the near-term, maybe to 1.10. A bearish market might provide resistance because it has been a key pivot since late March. 

Reaction Respects Double Bottom:
The 1H chart shows that the market was coming up from the double bottom, but the poor US GDP data, and in-line Canadian GDP data gave it a shake. However the shake respected the double bottom and traders continued to push up the USD/CAD. 

The FOMC monetary policy statement at 2:00PM is the next key event risk. Don't expect too much from USD/CAD before that, but see which side of 1.10 it will wind up after the release and the 4/30 session.