USD/CAD about to gain bullish momentum and reconquer 1.3500?
After the Bank of Canada fully abandoned its bias towards raising interest rates during April 24th's meeting, the USD/CAD pushed slightly above 1.3500, but didn't take on any further bullish momentum.
But as long as we trade above 1.3250/80 on a daily time-frame, a sustainable run back above 1.3500, with an initial target around 1.3670 on the upside stays on the table.
This seems particularly true after yesterday's Ivey PMIs came in better than expected, at 55.9 for April from 54.3 last March. And the weak reaction in the CAD helped with the push towards 1.3500 in USD/CAD.
In our opinion, this is a sign of another attempt to sustainably break above 1.3500 in the coming days, because if a solid dataset can't result in a positive reaction for the CAD, it underpins the fact that market participants give the neutral/dovish rhetoric of the BoC last month a lot of credit, probably even a little more now, after Trumps announcement of new tariffs on Chinese products from next Friday onwards.
Ready to start trading the live markets? Then open a free account with Admiral Markets - 8,000+ instruments to choose from, some of the market's tightest typical spreads, and the world's #1 multi-asset trading platform. admiralmarkets.com/start-trading/
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
But as long as we trade above 1.3250/80 on a daily time-frame, a sustainable run back above 1.3500, with an initial target around 1.3670 on the upside stays on the table.
This seems particularly true after yesterday's Ivey PMIs came in better than expected, at 55.9 for April from 54.3 last March. And the weak reaction in the CAD helped with the push towards 1.3500 in USD/CAD.
In our opinion, this is a sign of another attempt to sustainably break above 1.3500 in the coming days, because if a solid dataset can't result in a positive reaction for the CAD, it underpins the fact that market participants give the neutral/dovish rhetoric of the BoC last month a lot of credit, probably even a little more now, after Trumps announcement of new tariffs on Chinese products from next Friday onwards.
Ready to start trading the live markets? Then open a free account with Admiral Markets - 8,000+ instruments to choose from, some of the market's tightest typical spreads, and the world's #1 multi-asset trading platform. admiralmarkets.com/start-trading/
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
