Currently set to Index
Currently set to Follow
Tue, Jul 23, 2024

Canada to Release GDP Data Amid Oil Price Corrections
5 mins well spent

USDCAD is moving in the Box pattern and the market has falling from the resistance area of the pattern.

Canada is all set to release their GDP data, and this comes amid interest rates that have remained unchanged in anticipation of the upcoming CPI data, which is expected to be more positive than expected. Here are some factors to keep in mind:

US-Canada Deal

Migrants who are captured crossing the border anywhere along its 3,145 miles might now be returned to their home countries. Along the border between the United States and Canada, the Roxham Road sector has seen a significant number of unauthorized crossings. A loophole that had previously permitted migrants to claim asylum at such unofficial ports of entry would now be closed under the new pact. The news was made when Vice President Joe Biden was in Ottawa, Canada, meeting with his Canadian counterpart, Justin Trudeau, to address a variety of topics pertaining to economics, international commerce, and immigration.

EURCAD M30 TF analysis Market is moving in the broadway channel and the market has fallen from the lower high area of the channel

EURCAD is moving in the broadway channel and the market has fallen from the lower high area of the channel.

The agreement is a component of broader measures to restrict the flow of migrants through Roxham Road, which serves as an unofficial border crossing between the state of New York and the province of Quebec. In the last year, a record number of migrants, over 40,000, came into Canada, with the vast majority of them entering through the Roxham Road crossing point. Refugee groups have expressed their disappointment that the new agreement would not effectively put a halt to the undocumented entry of migrants into Canada. When the COVID border controls are lifted in May, the administration of Mr. Biden has suggested making it more difficult for migrants to claim asylum. This would be done in order to tighten down on asylum seekers at the southern border of the United States with Mexico. Human rights organizations have voiced their opposition to the initiative.

Canadian Dollar makes lower and consolidation place in the market min

During his trip to Canada, the President of the United States gave many speeches in which he emphasized the significance of the strong economic connections, defense alliances, and shared support for Ukraine that exists between the United States and Canada. The two heads of state gave their word to work together in the fight against authoritarian governments, and one of the ways they intend to do this is by decreasing their reliance on China to provide them with semiconductors and the essential minerals required to produce electric vehicles and batteries.

GBPCAD Daily TF analysis Market is moving in the Box pattern and the market has reached the resistance area of the pattern

GBPCAD is moving in the Box pattern and the market has reached the resistance area of the pattern.

The persistent instability in Haiti was another topic that was brought up. The country’s economy is in shambles, and both gang violence and kidnappings have seen high increases. The United States of America has exerted pressure on Canada to take the lead of an international force that will assist security forces in a Caribbean nation.

BOC Gravelle Speech

Bank of Canada’s Toni Gravelle recently gave a speech where he discussed some of the actions the Bank of Canada took at the outset of the COVID-19 pandemic to keep markets liquid and functioning. He reveals, “Global banks are more resilient today than they were 15 years ago, at the outset of the global financial crisis. With the reforms put in place since then, global banks are required to have substantially increased their capital and liquidity buffers, making the system safer and better able to withstand stress.”

CADJPY M30 TF analysis Market is moving in an Ascending channel and the market has reached the higher low area of the channel

CADJPY Market is moving in an Ascending channel and the market has reached the higher low area of the channel.

“In Canada, our banking system has a well-earned international reputation for stability. This reflects the structure of our banking system, together with sound risk management in our financial institutions and robust regulation and supervision. Canadian banks weathered the global financial crisis well, and since then, their resilience has been further strengthened with the implementation of new, higher global standards. But we know we’re not immune to spillovers from what’s happening elsewhere.”

Bank of Canada OTTAWA CANADA

“The financial system is highly globally integrated, so when financial stresses arise outside of Canada, they can negatively affect things here at home. The Bank’s mandate to promote the stability of the financial system means that we’re ready to act in the event of severe market-wide stress and provide liquidity support to the financial system. We did so during the 2008–09 global financial crisis, and we did so again during the critical market disruptions that occurred at the outset of the COVID-19 pandemic. And just as we adjusted our extraordinary liquidity facilities based on the lessons learned from our interventions through the global financial crisis, the review of our pandemic-related interventions will allow us to further improve and better target our responses in the event of market turmoil in the future.”

Oil Project Tensions

The extension of the Trans Mountain pipeline is scheduled to be completed by the end of this year, and it is quite possible that this will be the very last new oil export pipeline the country will ever require. The pipeline has been subjected to a myriad of hurdles over the course of its existence, including demonstrations, legal challenges, and significant cost overruns. The price tag for the project that is controlled by the federal government was revised up to more than $30 billion only last week. In the past ten years, numerous other high-profile pipeline plans have been unsuccessful, but the extension of the Trans Mountain pipeline is already more than 80 percent complete, and it is anticipated that oil will begin to move through the pipeline in the early years of 2024.

AUDCAD H4 TF analysis Market has broken the Descending channel and the market has retest the broken area of the channel

AUDCAD has broken the Descending channel and the market has retest the broken area of the channel.

Several people in the oil sector believe that there won’t be a requirement for any further new oil export pipelines since Alberta’s oil production growth is slowing down. The price tag of the undertaking has ballooned throughout the course of its lifetime as a consequence of a number of issues, such as worldwide inflation and difficulties in the supply chain, significant flooding in British Columbia, route revisions, difficult terrain, and expenditures related to security. The economic case for the pipeline is still strong, according to experts, because it will enable oil from Canada to reach the coast, where it can be sold at a higher price than if it were shipped to the United States, which is where the majority of Canadian oil is exported.

Trans Mountain pipeline

This is despite all of the problems that have arisen. In addition, the sector needs an additional export channel because the pipelines that are now in use are running out of room. As the building of the Trans Mountain extension draws closer and closer to completion, attention will soon shift to the question of who owns the project. The federal Liberal administration has indicated that it is willing to sell the pipeline at some point in the future. Still, only once it is clear that the construction project will be finished.

Don’t trade all the time, trade forex only at the confirmed trade setups.

Get Live Free Signals now:

Leave a Reply

Your email address will not be published. Required fields are marked *

Also read

85% Offer for Signals