USDCAD jumps as The Bank of Canada cuts again
The Bank of Canada lowered its interest rate again by 25 basis points in hopes of continuing its balance sheet normalisation policy. This has led to a significant drop in the Canadian dollar, with the USDCAD pair not seeing prices this high since last November. The central bank expects inflation to continue lower, primarily since the inflation rate declined to 2.7% in June. Overall, inflationary pressures are diminishing in the country, which could lead to more aggressive hikes at the next meeting. The pair is testing a former resistance at 1.3850 with 1.3750 as a fresh support.
XAUUSD looks to get back on track
Gold remains subdued since falling from its record-high peak, with $100 being wiped off. Data coming out of America was encouraging, which has caused a sell-off in the precious metal. The local economy grew at an annualised pace of 2.8% in Q2, while inflation in the same period was lower than expected. When they meet again, the Fed will have a big decision to make, which could provide further signals of where Gold will be heading for the remainder of the year. Gold could shine again and climb above 2420 with 2300 as the closest support.
NAS 100 correction continues as stocks underperform
Last week, stocks held a dramatic sell-off as mega-cap tech companies leading the Nasdaq posted their worst session since 2022. With Alphabet and Tesla leading the bearish charge, traders are wondering if the progressive record highs we have been seeing have ended. Is this just a blip, or have investors turned their attention elsewhere to make a quick buck? The index hovers around 19000, and 18300 is the immediate support.
