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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Thursday May 07 FX Market Wrap USDCAD in focus

Article By: ,  Financial Analyst
May 7, 2020 5:50 PM

Thursday May 07 FX Market Wrap - USD/CAD in focus

Good afternoon, 

Thursday May 07 FX Market Wrap - USD/CAD in focus

The US Dollar was bearish against most of its major pairs on Thursday with the exception of the JPY. On the economic data front, Initial Jobless Claims fell to 3,169K for the week ending May 2nd (3,000K expected), from a revised 3,846K in the prior week. Continuing Claims surged to 22,647K for the week ending April 25th (19,800K expected), from a revised 18,011K in the previous week, marking a record high. 

On Friday, Change in Nonfarm Payrolls for April are expected to plummet to -21,653K on month, from -701K in March. The Unemployment Rate for April is expected to increase 16.0% on month, from 4.4% in March. Finally, Wholesale Inventories for the March final readings are expected to decline 1.0% on month, in line with the March preliminary reading.                         

The Euro was bullish against most of its major pairs with the exception of the NZD, AUD and CAD. In Europe, the German Federal Statistical Office has reported March industrial production at -9.2% (vs -7.4% on month expected). France's INSEE has posted March industrial production at -16.2% (vs -12.4% on month expected) and manufacturing production at -18.2% (vs -16.0% expected). March Trade balance was released at 3.3 billion euros deficit vs 4 billion euros deficit expected. The Bank of England has maintained its interest rates at 0.10%, as expected.

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


Regarding major FX pairs,

• EUR/USD rose 34pips to 1.0829 the day's range was 1.0767 - 1.0834 compared to 1.0782 - 1.0846 the previous session.

• GBP/USD gained 9pips to 1.2359 the day's range was 1.2266 - 1.2418 compared to 1.2335 - 1.2450 the previous session.

• USD/JPY increased 17pips to 106.29 the day's range was 105.99 - 106.66 compared to 105.99 - 106.63 the previous session.

• USD/CHF fell 16pips to 0.9733 the day's range was 0.9729 - 0.9784 compared to 0.9721 - 0.9759 the previous session.

• AUD/USD jumped 89pips to 0.6489 the day's range was 0.6379 - 0.6506 compared to 0.6394 - 0.6453 the previous session.

• USD/CAD dropped 151pips to 1.3995 the day's range was 1.3953 - 1.4173 compared to 1.4023 - 1.4157 the previous session.

• The dollar index fell 0.22pt to 99.869 the day's range was 99.812 - 100.401 compared to 99.751 - 100.200 the previous session.



FX pair in focus, 

The USD/CAD was hit hard in Thursday's trading having declined 151 pips. Key resistance is set at 1.402 on an intraday 30-min chart. A retest of support at 1.395 is likely with a possible continuation lower towards 1.391. We anticipate Friday to be a volatile trading session due to jobs numbers coming out from Canada and the U.S. 



Source: GAIN Capital, TradingView


Happy Trading.

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