USDCAD posts an impressive rebound

The USD/CAD rebounded over 200 pips as the Dow slides 1861 points.

Canada US

USD/CAD posts an impressive rebound

The US Dollar was bullish against most of its major pairs on Thursday with the exception of the CHF and JPY.

On the economic data front, the Producer Price Index Final Demand increased 0.4% on month in May (+0.1% expected), from -1.3% in April. Initial Jobless Claims fell to 1,542K for the week ending June 6th (1,550K expected), from a revised 1,897K in the previous week. Continuing Claims decreased to 20,929K for the week ending May 30th (20,000K expected), from a revised 21,268K in the prior week. 

On Friday, the University of Michigan's Consumer Sentiment Index for the June preliminary reading is expected to increase to 75.0 on month, from 72.3 in the May final reading.                                                                                                          
The Euro was bullish against most of its major pairs with the exception of the CHF, JPY and USD. In Europe, in the U.K., the RICS index measuring house prices came out at -32% in May, against -24% expected and -22% the previous month (revised from -21%).

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

Looking at the most active pairs, the USD/CAD jumped an impressive 208 pips to 1.362. We have to look at a daily chart in order to see its impressive rebound in Thursday's trading. Traders playing the rebound may want to consider a stop-loss at the high of the bullish hammer reversal candlestick that formed on Wednesday. Key resistance can be seen at 1.385.



Source: GAIN Capital, TradingView

Happy trading.

More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.