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THIS WEEK IN THE FOREX MARKETS
Trading Insider | 17 th August 2020
USD/CAD Rates May Wilt on Canadian Inflation and Retail Sales Data
USD/CAD, Bank of Canada, Federal Reserve, Inflation, Economic Surprise Index – Talking Points: The Nikkei 225 index plunged during APAC trade after Japanese second quarter GDP showed the island-nation had suffered its most severe contraction on record. The differing stances of the Federal Reserve and Bank of Canada may be weighing on USD/CAD rates. USD/CAD rates poised for further declines after slicing through pivotal trend support.
Asia-Pacific Recap The Nikkei 225 stock index slid lower during Asia-Pacific trade, as second quarter GDP showed the Japanese economy had suffered its most severe contraction on record. The Japanese Yen fell after the announcement, whilst the US Dollar continued its slide against its major counterparts as the DXY plunged back below the psychologically pivotal 93 level. Gold climbed back above the $1,950/oz mark and silver rebounded 1.7% as yields on US 10-year Treasuries faded back below 70 basis points. Looking ahead, a relatively light economic docket may see traders turn their focus to developments between the US and China, after the cancellation of highly anticipated trade talks between the two economic powerhouses over the weekend. Read more...
