Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Asset Watch
Tuesday, July 23, 2024
The Canadian dollar has weakened for the second consecutive week against the US dollar as markets brace for the Bank of Canada’s rate decision tomorrow. Investors expect the central bank to deliver its second rate cut of the year by 25 basis points and will tune into the BoC press conference for more insights and possible forward guidance regarding Canadian monetary policy.
Meanwhile, markets are awaiting the US PCE figures (the Fed’s preferred measure of inflation) for June, due at the end of this week. It is important to note that the market has already priced in a 25-basis point rate cut for the September meeting, and further softness in the inflation data could encourage investors to anticipate up to three additional 25 basis point rate cuts this year. Bloomberg forecasts the year-over-year PCE headline to fall from 2.6% in May to 2.4% in June, while the year-over-year core PCE is expected to decrease from 2.6% in May to 2.5% in June.
Chart Source: ADSS Platform
At the end of April, USD/CAD corrected lower, and since then, the price has moved sideways, forming lower highs and higher lows. Last week, the pair closed above the 50-day simple moving average, indicating a potential shift towards bullish sentiment.
Right now, the price eyes a test of the high end of the current trading zone spanning between 1.3851- 1.3589. A daily close above the high end of the zone could encourage bulls to extend the rally towards the 1.3900 mark. On the flip side, failure in closing above the high end of the zone suggests a continuation of the sideways move potentially sending the price to revisit the low end of the current trading zone.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
