- February 26, 2018
- Posted by: Joey Benedid
- Category: Market News
Volatility continues in FX markets with the dollar index deteriorating after failing to sustain gains above the 90.00 level last week (see chart). As players attempt to disseminate whether the FED will hike 3 or 4 times in 2018 the fate of U.S. Treasuries vacillates until a clearer picture emerges. U.S. data releases of note this week are core durable goods numbers out Tuesday and preliminary GDP on Wednesday while FED Chair Powell is due to testify on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC this week.
USD/CAD sold off aggressively last Friday after stronger inflation numbers stoked speculation that the Bank of Canada should be hiking rates if economic releases show growth & productivity is on the rise. After many in the market perceived the Bank to be on hold this jolt will create a sharper focus on this week’s Canadian GDP release on Friday. Navigating through the U.S. releases will take precedence beforehand but Friday’s numbers will hold the fate of the Canadian dollar in its hands. We should trade within the current wedge pattern (see CAD chart) bound by 1.2748 on the top with support at 1.2580.
