USDCAD (Canadian dollar) finding support
The USDCAD (Canadian dollar) lost a bit more ground to its neighbour as last week’s Fed decision kept the greenback elevated. Fed Chair Jerome Powell set a muted tone on whether there would be any rate cuts this year as Trump’s tariff war continues. This week’s inflation data could set the tone for the next few weeks on which direction the dollar will take, with retail sales also a key driver in the path forward. Meanwhile, the loonie might continue to benefit from higher oil prices. The pair is heading to 1.4000, with 1.3850 as the first support.
XAUUSD falling away from peak
Gold seems to be down but not out, as the yellow metal lost over $100 in value over the past few sessions. Traders now await US-China trade talks as the recent deal with the UK raised hopes that more agreements can be made with other countries. Whether or not another record high is on the horizon, we can be sure that this is not the end of the volatility for gold. In that respect, demand for the safe haven metal stays firm, with the price looking to revisit prices above 3360. 3240 is the first support in case of a pullback.
SPX 500 continuing recovery
Stocks continued to rise after the announcement of a trade deal between America and the UK, the first major agreement since the pre-emptive tariffs placed on most of the world. With this being a sign of brighter things to come, the S&P, along with other major indices, look to be pulling off a full recovery. There will be some hesitancy, especially if Donald Trump begins imposing higher tariffs on other countries. The index is attempting a move towards 6000, with 5500 being the closest support.
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