USDCAD on Friday dropped -0.19% to 1.34210. Week ending 2023-06-02 moved lower by -1.41%. What you need to know.
|Week 2023-06-02||-1.41%||-192 Pips|
Upcoming key events for the new week (London Time)
Wed 03:00 PM CAD Bank of Canada Policy Interest Rate
Wed 03:00 PM CAD Bank of Canada Rate Statement
Thu 01:30 PM USD Initial Unemployment Insurance Claims
Fri 01:30 PM CAD Net Change in Employment
Fri 01:30 PM CAD Unemployment Rate
What happened over the week
🇺🇸 Nonfarm Payroll Employment in May exceed forecast and rose to 339K compared to previous figure 294K in April (revised from 253K) Source: Bureau of Labor Statistics
🇺🇸 In the week ending 27 May, the Initial Unemployment Insurance Claims rose to 232K compared to previous figure 229K Source: Department of Labor
🇺🇸 Nonfarm Business Labor Productivity in Q1 below forecast and improved to -2.1% compared to previous figure -2.7% in Q4 Source: Bureau of Labor Statistics
🇺🇸 U.S. ADP Non-Farm Employment Change in May dropped to 278K compared to previous figure 291K (revised from 296K)
🇨🇦 Canada GDP (1-mth) in March exceed forecast and dropped to 0% compared to previous figure 0.1% in February Source: Statistics Canada
🇨🇦 Canada GDP (12-mth) in Q1 rose to 3.1% compared to previous figure -0.1% (revised from 0%) Source: Statistics Canada
🇨🇦 Canada GDP (3-mth) in Q1 exceed forecast and rose to 0.8% compared to previous figure 0% in Q4 Source: Statistics Canada
🇺🇸 U.S. Housing Price Index (1-mth) in March dropped to 0.6% compared to previous figure 0.7% (revised from 0.5%)
🇨🇦 Canada Current Account in Q1 rose to -6.17B compared to previous figure -8.05B (revised from -10.64B) Source: Statistics Canada
What can we expect from USDCAD for the new week and what happened on Friday?
USDCAD on Friday dropped -0.19% to 1.34210. Price is below 9-Day EMA while Stochastic is falling. For the week ending 2023-06-02, the pair dropped -1.41% or -192 pips lower.
Looking ahead on Monday, USDCAD looks bearish as the pair posted lower in Friday trading session.
For the new week, our technical outlook looks bearish, immediate support level is at 1.33323 (WS1) with break below could see further selling pressure towards 1.32436 (WS2). For potential buyers, as the current momentum is bearish, we prefer to look at firm break of the week high of 1.36511 as an important indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below week low of 1.34030 would indicate selling pressure.
For the month of June, USDCAD is down by -1.1% or -149 pips lower.
Weekly key levels to watch out:
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Payroll employment increases by 339,000 in May; unemployment rate rises to 3.7% Source: Bureau of Labor Statistics
Construction Spending Source: Census Bureau
Gross domestic product by industry, March 2023 Source: Statistics Canada
Gross domestic product, income and expenditure, first quarter 2023 Source: Statistics Canada
Minutes of the Board’s discount rate meetings from April 10 through May 3, 2023 Source: Federal Reserve