USDCAD remains bearish
Trade tariffs have been the centre of attention in the past few months as the worries over an upcoming recession seem more and more likely. As the greenback continues its sell-off, traders have given up on a potential rebound. With a host of newcomers coming from the Canadian side this week, unemployment, PMI, and the balance of trade data could sink the pair even lower. The pair is heading to 1.3700 with 1.3880 as a first resistance.
XAUUSD hitting lower lows
Gold extended the decline as the precious metal edges lower to near a two-week low amid easing US-China trade tensions. Traders are hopeful about a trade deal after Donald Trump’s comments on the probability of a settlement. With price action collapsing from its recent peak at 3500, sentiment hits a new low as prices now look towards 3160, becoming the first support, with 3300 the first target should buyers enter the market.
The S&P index (SPX 500) rallies on decent earnings
The S&P index propelled higher as Meta and Microsoft advanced on stronger-than-expected revenue in their first quarters. A meteoric bounce back shows the index is far from beaten, especially after touching the 4800 area at the beginning of April. Should earnings remain progressive, we could see an extension on the bullish rally, with 5800 being the next target to the upside. On the flip side, if the index runs out of steam, expect 5400 to be the closest support.
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