Fundamental Analysis of USDCAD for April 17, 2019

USDCAD is consolidating between 1.3300 and 1.3450. There were signs of an upcoming CAD momentum over USD in March.

The US-China trade affected the US economy growth as well as US businesses. The world's two biggest economies have been in a trade war for the last 9 months, and it has cost them billions of dollars, unstable financial markets, and upended supply chain process. US President Donald Trump imposed $250 billion worth of tariffs on goods from China including industrial subsidies, forced technology transfers, and market access barriers.

The US 10-year Treasury rate is still low, policymakers may wish to hold more short-term securities. If the Fed fails to achieve the 2% target, there will be a possible recession. However, it might be avoided by changing short term interest rates. The Consumer Price Index increased by 1.9% before seasonal adjustment undershooting the 2% target. The Labor market is strong, while the GDP is expected to bounce. The unemployment rate was 3.8% in February, while the production rate advanced in the same month. The US retail sales report is due this week, the forecast is 0.4%, and the previous reading was -0.2%. The Industrial Production is anticipated to improve from 0.0% to 0.3%, and the outlook for the Building Permit data is also positive.

analytics5cb6edc2cd448.png

The material has been provided by InstaForex Company - www.instaforex.com