The Canadian dollar weakened on Thursday after FED Chair Powell hawkish speech and downward moods prevail today amid China's worsening Covid-19 outbreak which pushed oil prices lower and supported USD. Also comments from BOC Chairman Macklem did not change market sentiment towards Loonie as he did not offer any new information.
Macklem said that BOC will consider another 50 bps hike in June and price increases aren't as transitory as he said they would be last year, however in his view inflation is close to a peak.
USDCAD pair climbs higher after breaking above local resistance at 1.27 which coincides with 38.2% Fibonacci retracement of the upward wave launched in October 2021 and upper limit of 1:1 structure. If current sentiment prevails, major resistance at 1.28 may be at risk. Source: xStation5
Powell Signals Fed Patience, but Inflation Risks Are Rising!
Powell Speaking: Markets Watch Fed Policy
Breaking: Inflation in Germany in line with expectations! EURUSD moves lower!
Daily summary: Fifth week of declines on the Wall Street
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
