USDCAD Analysis
| Performance | |||||
| Period | Pct | Chg | Momentum | ||
| Friday | -1.23% | -166 Pips |  |
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| Week 2023-05-05 | -1.3% | -176 Pips | |
||
| May | -1.3% | -176 Pips | |
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Upcoming key events for the new week (London Time)
Wed 01:30 PM USD CPI Inflation Rate excluding Food & Energy sectors (1-mth) Wed 01:30 PM USD CPI Inflation Rate excluding Food & Energy sectors (12-mth) 
Thu 01:30 PM USD Initial Unemployment Insurance Claims Fri 03:00 PM USD Michigan Index of Consumer Sentiment
What happened over the week
🇺🇸 Nonfarm Payroll Employment in April exceed forecast and rose to 253K compared to previous figure 165K, revised from 236K in March Source: Bureau of Labor Statistics
🇨🇦 Labour Force Participation Rate in April unchanged at 65.6% compared to previous report in March. The actual figure is also in line with the forecast Source: Statistics Canada 🇨🇦 Ivey Purchasing Managers Index in April dropped to 55.6 compared to previous figure 65.2 in March USD Nonfarm Business Labor Productivity in Q1 preliminary estimate dropped to -2.7% compared to previous figure 1.6% (revised from 1.7%). Source: Bureau of Labor Statistics 🇺🇸 In the week ending 29 April, the Initial Unemployment Insurance Claims rose to 242K compared to previous figure 229K (revised from 230K) Source: Department of Labor 🇺🇸 Goods and Services Trade Balance in March exceed forecast and improved to -64.2$ compared to previous figure -70.6, revised from -70.5$ in February 🇺🇸 Fed Interest Rate Decision (Federal Funds Rate) rose to 5.25% compared to previous rate 5% Source: Federal Reserve 🇺🇸 Factory Orders (1-mth) in March exceed forecast and rose to 0.9% compared to previous figure -1.1, revised from -0.7% in February Source: Census Bureau
What can we expect from USDCAD for the new week and what happened on Friday?
USDCAD on Friday dropped -1.23% to 1.33710. Price is below 9-Day EMA while Stochastic is falling. For the week ending 2023-05-05, the pair dropped -1.3% or -176 pips lower.
Looking ahead on Monday, USDCAD looks bearish as the pair posted lower in Friday trading session.
For the new week, our technical outlook looks bearish, immediate support level is at 1.32789 (WS1) with break below could see further selling pressure towards 1.31869 (WS2). For potential buyers, as the current momentum is bearish, we prefer to look at firm break of the week high of 1.36392 as an important indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below week low of 1.33670 would indicate selling pressure.
For the month of May, USDCAD is down by -1.3% or -176 pips lower.
Weekly key levels to watch out:
| R3 | 1.38233 |
| R2 | 1.37313 |
| R1 | 1.35511 |
| Weekly Pivot | 1.34591 |
| S1 | 1.32789 |
| S2 | 1.31869 |
| S3 | 1.30067 |
You might also be interested in:
Advanced Monthly Sales for Retail and Food Services Source: Census Bureau Payroll employment rises by 253,000 in April; unemployment rate changes little at 3.4% Source: Bureau of Labor Statistics Publications
Labour Force Survey, April 2023 Source: Statistics Canada U.S. International Trade in Goods and Services, March 2023 Source: Bureau of Economic Analysis U.S. International Trade in Goods and Services Source: Census Bureau Housing Vacancies and Homeownership Source: Census Bureau Rental Vacancy Rate Source: Census Bureau Canadian international trade in services, March 2023 Source: Statistics Canada Federal Reserve issues FOMC statement Source: Federal Reserve Manufacturers’ Shipments, Inventories, and Orders Source: Census Bureau Construction Spending Source: Census Bureau Gross domestic product by industry: Provinces and territories, 2022 Source: Statistics Canada
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