Market News & Analysis

Friday May 01 FX Market Wrap - USD/CAD in focus

Good afternoon, 

Friday May 01 FX Market Wrap - USD/CAD in focus

The US Dollar was bullish against most of its major pairs on Friday with the exception of the CHF, JPY and EUR. On the economic data front, Markit's U.S. Manufacturing Purchasing Managers' Index fell to 36.1 on month for the April final reading (36.7 expected), from 36.9 in the April preliminary reading, marking a new record low. Construction Spending rose 0.9% on month in March (-3.5% expected), from a revised -2.5% in February. On Monday, Factory Orders for March are expected to decline 9.2% on month, from no change in February. Finally, Durable Goods Orders for the March final reading are expected to drop 14.4% on month, in line with the March preliminary reading.                

The Euro was bullish against most of its major pairs with the exception of the CHF and JPY. In Europe, Research firm Markit has published final readings of April Manufacturing PMI for the U.K. at 32.6 (vs 32.8 expected). The Nationwide Building Society has published its house price index for April at +0.7% (vs -0.3% on month expected). The Bank of England has released the number of mortgage approvals in March at 56,200 (vs 58,000 expected).

The Australian dollar was bearish against all of its major pairs. 

Regarding major FX pairs,

• EUR/USD was up 19pips to 1.0974 the day's range was 1.0935 - 1.1018 compared to 1.0833 - 1.0972 the previous session.

• GBP/USD dropped 97pips to 1.2497 the day's range was 1.2483 - 1.2601 compared to 1.2429 - 1.2643 the previous session.

• USD/JPY fell 27pips to 106.91 the day's range was 106.61 - 107.41 compared to 106.41 - 107.50 the previous session.

• USD/CHF declined 35pips to 0.9618 the day's range was 0.9589 - 0.9669 compared to 0.9639 - 0.9759 the previous session.

• AUD/USD dropped 91pips to 0.6421 the day's range was 0.6410 - 0.6512 compared to 0.6490 - 0.6570 the previous session.

• USD/CAD jumped 114pips to 1.4059 the day's range was 1.3930 - 1.4110 compared to 1.3851 - 1.3959 the previous session.

• The dollar index rose 0.04pt to 99.052 the day's range was 98.781 - 99.214 compared to 98.805 - 99.725 the previous session.

FX pair in focus,

The USD/CAD had the largest move in Friday's trading. The pair broke above a declining trend line in place since April 21 (red line) and is now supported by a rising trend line since yesterday's low. Look for a continuation higher towards 1.415 resistance as long as the USD/CAD can remain above the 1.404 pivot. 

Source: GAIN Capital, TradingView

Have a great weekend


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