Forex traders will get a heavy dose of economic data out of the US on the last trading day of the week, the month, the second-quarter and the first-half of 2019. With the G-20 Summit in Osaka in full swing, there is plenty of noise, hope and expectations circulating across forex trading desks. Today’s US personal income and spending data as well as the Chicago PMI will likely move price action in the US Dollar, especially if the data comes in weaker than expected. The US Fed stated that interest rate adjustments will become data dependent and the data has been weak. This could further accelerate the sell-off in the USDCAD, make sure to check out our latest forex broker trading recommendation and take the profitable side of this trade.
Here are the key factors to keep in mind today for US Dollar trades:
- US Personal Income and Personal Spending: US Personal Income for May is predicted to increase by 0.3% monthly and Personal Spending is predicted to increase by 0.5% monthly. Forex traders can compare this to Personal Income for April which increased by 0.5% monthly and to Personal Spending which increased by 0.3% monthly. Real Personal Spending for May is predicted to decrease by 0.4% monthly. Forex traders can compare this to Real Personal Spending for April which were reported flat at 0.0% monthly. The PCE Deflator for May is predicted to increase by 0.2% monthly and by 1.5% annualized. Forex traders can compare this to the PCE Deflator for April which increased by 0.3% monthly and by 1.5% annualized. The PCE Core Deflator for May is predicted to increase by 0.2% monthly and by 1.6% annualized. Forex traders can compare this to the PCE Core Deflator for April which was increased by 0.2% monthly and by 1.6% annualized.
- US Chicago PMI: The US Chicago PMI for June is predicted at 53.1. Forex traders can compare this to the US Chicago PMI for May which was reported at 54.2.
- US Michigan Consumer Sentiment: Final US Michigan Consumer Sentiment for June is predicted at 98.0. Forex traders can compare this to previous US Michigan Consumer Confidence for June which was reported at 97.9. Final Current Conditions for June are predicted at 112.6 and Final Expectations are predicted at 89.4. Forex traders can compare this to previous Current Conditions for June which were reported at 112.5 and to Expectations which were reported at 88.6.
The Canadian Dollar has rallied across the board as oil and gold prices surged due to the flare up in tensions between the US and Iran. Dovishness by the US Fed has further accelerated the sell-off in the USDCAD which is likely to continue over the summer months, but at a reduced rate. Today’s Bank of Canada Overall Business Outlook Survey for the second-quarter is expected to move the Canadian Dollar, but in which direction? Subscribe to the PaxForex Daily Fundamental Analysis and always get the latest fundamental analysis and trading recommendations delivered to your inbox.
Here are the key factors to keep in mind today for Canadian Dollar trades:
- Canadian GDP: The Canadian GDP for April is predicted to increase by 0.2% monthly and by 1.5% annualized. Forex traders can compare this to the Canadian GDP for March which increased by 0.5% monthly and by 1.4% annualized.
- Canadian Industrial Product Price Index and Canadian Raw Materials Price Index: The Canadian Industrial Product Price Index for May is predicted flat at 0.0% monthly and the Canadian Raw Materials Price Index is predicted to decrease by 3.0% monthly. Forex traders can compare this to the Canadian Industrial Product Price Index for April which increased by 0.8% monthly and to the Canadian Raw Materials Price Index which increased by 5.6% monthly.
Should price action for the USDCAD remain inside the or breakdown below the 1.3025 to 1.3150 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3090
- Take Profit Zone: 1.2685 – 1.2780
- Stop Loss Level: 1.3265
Should price action for the USDCAD breakout above 1.3150 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3235
- Take Profit Zone: 1.3380 – 1.3520
- Stop Loss Level: 1.3150
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Get your MetaTrader4 login today and join our fast growing community of profitable forex traders!
