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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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USDCAD largest decline of the week

Article By: ,  Financial Analyst
October 9, 2020 6:25 PM
The S&P 500 closed up 3.84% last week, lifted by Semiconductors & Semiconductor Equipment (+6.21%), Materials (+5.12%) and Energy (+4.97%) sectors. 

On last week's economic data front: 

Regarding jobs data, Initial Jobless Claims declined to 840K for the week ending October 3rd (820K expected), from a revised 849K in the week before. Continuing Claims dropped to 10,976K for the week ending September 26th (11,400K expected), from a revised 11,979K in the prior week. Job Openings fell to 6.49 million jobs on month in August (6.50 million jobs expected), compared to a revised 6.70 million jobs in July.

The Mortgage Bankers Association's Mortgage Applications rose 4.6% for the week ending October 2nd, compared to -4.8% a week earlier. 

The Federal Open Market Committee's (FOMC) Meeting Minutes stated that on net, financial conditions have eased since the last Meeting. As equity prices have risen and the dollar continues to depreciate, the Fed believes that aggressive monetary and fiscal policy are needed to keep the recovery going strong as market participants still see significant risks ahead. 

The Trade Deficit increased to 67.1 billion dollars on month in August (66.2 billion dollars expected), from a revised 63.4 billion dollars in July, a level last reached in 2006. 

Job Openings fell to 6.49 million jobs on month in August (6.50 million jobs expected), compared to a revised 6.70 million jobs in July.

Finally, Wholesale Inventories rose 0.4% on month in the August final reading (+0.5% expected), compared to +0.5% in the August preliminary reading.

The USDCAD remains in the headlines as the USD fell 1.45% on the week against the CAD making it the largest percentage mover. Our downside target at the 1.3125 support area we mentioned yesterday has now been reached. We have tightened our stop-loss to 1.3265, just above the 50-day moving average which should act as resistance. We are still anticipating a continuation of the decline down towards the 1.30 low from September. 



Source: GAIN Capital, TradingView

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