Forex Marketz Daily Forex News – Fully Markets Update
Not surprisingly, the U.S. dollar (USD) came under pressure against the Canadian dollar (CAD) after commentary from Federal Reserve Chair Jerome Powell.
Looking at the headline USD/CAD currency exchange rate and above thirty (30) minute MT 4 chart, the greenback is trading near a seventh month low price point at 1.3101.
Yesterday, the two day Jackson Hole Economic Symposium began and Federal Reserve Chair Jerome Powell spoke. Mr. Powell said that the Federal Reserve will set an annual target for average inflation of two percent.
He also said that the Federal Reserve will allow inflation to run at the target or above for a period of time before raising the Fed Funds Rate (FFR). Lower interest rates are likely to keep gains with the greenback in check which would benefit the Canadian dollar.
Canada is releasing their monthly gross domestic product (GDP) numbers which should cause price volatility with the Canadian dollar. The United States will release the Federal Reserve Board’s preferred measure of inflation, the PCE price inflator. The U.S. is also releasing monthly personal spending index.
The Chicago Federal Reserve is releasing their purchasing managers’ index (PMI). The University of Michigan will release their revised consumer sentiment index.
There are some items on the Eurozone economic calendar to monitor. These include monthly German import prices and France is releasing preliminary quarterly gross domestic product data (GDP).
Daily Canadian Dollar Technical Analysis (USD/CAD)
Looking at price action on the above MT 4 chart, the USD/CAD Forex market is trading within a short term ascending channel and below the two hundred (200) day moving average which is keeping selling pressure on the U.S. dollar.
With that said, the downward sloping trend line, in play since 24 August, offers the first level of technical support to watch. This downside barrier comes into play at 1.31. The next downside barrier lines up at 1.3090. Coming into play next is a congestion zone at 1.3050 to 1.3045.
On the upside, the first layer of technical resistance lines up at the channel resistance at 1.3150. The 200 day moving average lines up at 1.3175 with and upside congestion zone coming into play at 1.3240 to 1.3245.
