{"id":113521,"date":"2017-09-25T10:44:17","date_gmt":"2017-09-25T14:44:17","guid":{"rendered":"http:\/\/countingpips.com\/?p=113521"},"modified":"2017-09-25T09:45:23","modified_gmt":"2017-09-25T13:45:23","slug":"usdcad-forex-technical-analysis-preparing-for-the-publication-of-the-gdp-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/09\/usdcad-forex-technical-analysis-preparing-for-the-publication-of-the-gdp-data\/","title":{"rendered":"USDCAD: Forex Technical Analysis – Preparing for the publication of the GDP data"},"content":{"rendered":"
September 25, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

Preparing for the publication of the GDP data<\/strong><\/p>\n

On Friday, September 22, 2017, the August inflation data were published in Canada. Its increase was less than forecasted, which reduced the chances of Bank of Canada\u2019s rate hike at its next meeting on October 25, 2017. Will the USDCAD prices <\/a>grow?<\/p>\n

Their growth means the weakening of the Canadian dollar against the US dollar. Currently, according to the interest rate swap quotes, the probability of Bank of Canada’s rate hike at its October meeting is 41%. Its current level is 1%, which is below the Fed rate of 1.25%. Note that the probability of the Fed rate hike at the next meeting in December 2017 is close to 70%. This week two important events are expected in Canada which may affect the dynamics of the Canadian dollar. On Wednesday, the press conference of the head of Bank of Canada Stefan Poloz is expected. On Friday, the data on Canada GDP for July will come out. According to forecasts, its growth will slow down both in annual and monthly terms.<\/p>\n

\"USDCAD\"<\/p>\n

On the daily timeframe, USDCAD: D1<\/b> approached the resistance line of the downtrend. In order to open a buy position, it needs to be overcome. The further price increase is possible in case of the publication of weak Canadian economic data and Bank of Canada\u2019s refusal to raise the rate.<\/p>\n