MasterMind Update (MMU) – USD/CAD On Range Bound Movement As Macro Data Fails to Provide Breakout Triggers — USD/CAD pair has seen serious sideways movement during Asian market hours today. CAD started moving on this rally during trading session yesterday post hawkish statements made by Bank of Canada Governor Poloz and gained further momentum post bearish readings in US Oil Inventories. The pair has been drifting with range bound momentum around 1.2850 ahead of European session. The pair has been on range bound movement for past eight trading sessions in a tight range of 1.28 to 1.29.
Both currencies of the pair has been on tug of war across the week as impact from macro economic data has failed to provide a solid breakout trigger for either of the currencies involved. This week saw US data take a hit on varies aspect but overall strength of US dollar remains unchanged as positive influence from macro economics and influence from last week’s U.S. Treasury yields still linger among traders. When Canada is concerned the macro economic data has been in line with expectation or the performance has been well above expectations.
However uncertainties from NAFTA talks and mixed signal from BOC governor Poloz’s has reined in CAD’s momentum gained from positive macro economic data this week. One such trigger that had less than expected impact on market was decline in US Crude Oil and Gasoline Inventory data. Traders are currently on look out for Trade balance, export & import data to be released later today and also await Ivey PMI data for the month of April 2018 to be released on Friday. On US markets traders are awaiting ISM Non Manufacturing PMI, Non Farm Payroll and Unemployment data to be released today and tomorrow respectively. Expected support and resistance for the pair for next two trading session of this week are at 1.278 and 1.292 respectively.