USDCAD experienced a volatility jump at 3:00 pm BST today, following rate decision announcement from Bank of Canada as well as release of the services ISM data for August from the United States.
Bank of Canada left interest rates unchanged as expected, with the main Canadian rate staying at 5.00%. Money markets were pricing virtually 100% chance of such an outcome and recent data from Canada, especially poor GDP data for Q2 2023, cemented those expectations.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appUS services ISM index was expected to tick lower in August, from 52.7 to 52.5 pts. Actual data showed an unexpected jump from 52.5 to 54.5 pts. Higher month-over-month readings were spotted in all sub-categories - Prices Paid, Employment and New Orders.
USDCAD jumped in response as the BoC decision turned out to be as expected and ISM was much better than expected. Pair recovered from a small daily loss and swung to gain. Taking a look at the pair at D1 interval, we can see that it is making an attempt at breaking above a key medium-term resistance zone in the 1.3650 area.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
