fbpx

Canada GDP expected to slow

Canada GDP expected to slow - MarketPulseMarketPulse

image

Home/FX/Newsfeed/Technical analysis

Share 0

The Canadian dollar has posted gains on Wednesday, with the North American markets yet to open. Currently, USD/CAD is trading at 1.2868, down 0.31% on the day.

Trump threatens veto of stimulus package

The financial markets can be forgiven for assuming that the US stimulus bill was a done deal after both houses of Congress overwhelmingly voted to approve the massive package, worth USD892 billion. Enter President Trump, who has threatened not to sign the bill, saying that the stimulus checks to individual Americans are far too small. The specter of a presidential veto of the bill is compounded by the fact that the bill approved by Congress also provides funding for the federal government. If the bill is not passed into law, this would result in a partial government shutdown next week. Congress can override a veto if two-thirds of the lawmakers in each house approve of the bill, but Republicans will be clearly hesitant to use such a measure against their own president. Is Trump bluffing about resorting to a veto? Perhaps, but at the very least it is keeping the financial markets busy in the usually quiet period just before Christmas.

Later on Wednesday, Canada releases GDP, which is released on a monthly basis (13:30, GMT). After hitting an impressive 6.5% growth rate in June, GDP has been falling, which points to a recovery that is rapidly losing steam. GDP slowed to 0.8% in September and the trend is projected to continue in October, with a forecast of just 0.3 per cent. Any figure weaker than this could sour sentiment towards the Canadian dollar and send the currency lower.

 

USD/CAD Technicalimage

 

USD/CAD faces resistance at 1.2936. The next resistance line is at 1.3101 There is support at 1.2831, followed by a support line at 1.2714 USD/CAD crossed above the 20-day MA line on Tuesday. This is a sign of an upswing for the pair

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.

Kenny Fisher

Latest posts by Kenny Fisher (see all)

Original author: Kenny Fisher

Copyright

© MarketPulse

Trump stimulus shocker, France reopens border, dol...
Run for Charity: How Indonesian Fintech JULO marks...
 

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/

 
     
 

Broker Search

Latest Spot Rate

 
27 January 2021
Key risk events today: Australia Inflation (CPI q/q); FOMC Statement, Federal Funds Rate Decision and Press Conference. (Previous analysis as well as outside sources – italics). EUR/USD: H4 resistance at 1.22/1.2180 (composed of the 1.22 figure, a co...
27 January 2021
NEW YORK, Jan. 27, 2021 /PRNewswire/ -- Planet Green Holdings Corp. (the "Company") (NYSE American: PLAG) announced today that the Company has entered into a Share Purchase Agreement with three investors (the "Transaction"). Pursuant to the agreement...
27 January 2021
US data, Italian politics - MarketPulseMarketPulse Home/Central banks/COVID-19/News events/Newsfeed/Treasuries Share 0 Markets expect dovish signal from Fed The Fed’s first policy meeting of the year should be a dovish affirmation that signals they a...
27 January 2021
Earnings galore! - MarketPulseMarketPulse Home/COVID-19/Earnings season/News events/Newsfeed Share 0 Tech earning  in spotlight Today is the calm before a tech earnings storm and an FOMC policy decision that attempts to avoid any communication mistak...
27 January 2021
Japanese yen - MarketPulseMarketPulse Home/Central banks/COVID-19/FX/News events/Newsfeed Share 0 The Japanese yen continues to range-trade early in the week. Currently, USD/JPY is trading at 103.67, down 0.06% on the day. BoJ minutes note concern ov...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2021 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.