USD/CAD: the pair has moved to correction
The Canadian dollar is gaining momentum against the US currency, approaching the peaks of the April level. At the time of writing, the instrument is trading at 1.2565.
The "bullish" trend resumed thanks to the decision of the Canadian regulator on the eve to raise the key indicator to 1.50% or immediately by 50 basis points. In an extreme publication, Bank of Canada officials noted that being in circumstances of great risks of an increase in the inflation rate from the current level of 6.8%, the regulator is forced to take a direct part in the situation, limiting the pressure on prices. Experts are confident that in the near future the overnight rate will reach 1.50%, in the banking sector – 1.75%, and the deposit rate will reach 1.50%. The regulator will continue its quantitative tightening program.
- Resistance levels: 1.2630, 1.2812.
- Support levels: 1.2540, 1.2400.
USD/TRY: the instrument is trading in pressure
The USD/TRY trading pair turned to an upward trend with the onset of May, completing a two-month period of conditional stability, testing the 16.5000 mark. The Turkish currency remains under negative influence factors due to the strengthening of the position of inflation on a global scale and the promotion of tightening in monetary parameters by US Federal Reserve officials.
Experts note the publication of inflationary sentiments in the national economy, which confirmed a partial decline in the growth rate of inflation. Thus, the price index decreased its positions to 2.98% from the previous 7.25% on a monthly basis and increased to 73.50% from 69.97% on an annual basis, contrary to experts' forecasts of 76.55%. In the overall picture, inflation still has a significant potential for further growth, and the Central Bank of Turkey does not want to influence the situation to correct the situation. Thus, the agency refrains from launching the process of increasing indicators, using alternative tools, which still have minor effects.
- Resistance levels: 16.7968, 17.1875.
- Support levels: 15.9000, 15.6250, 15.2343.
Cryptocurrency Market
The market of electronic assets continues to remain under negative factors of monetary parameters. The commitment to the US Federal Reserve's performance improvement program leads to a significant strengthening of the US dollar against other assets in all market segments, not excluding digital assets. Meanwhile, the correction of quotations in the last three weeks provides a reserve for market participants to remain optimistic about reaching a fundamental level of support, which will become a "red line" for further pushing tokens to growth.
During the trading sessions of the current week, the crypto market traded in different directions. So, the upward dynamics was replaced by a price correction, which led to the loss of the positions achieved, and at the moment BTC is held within 30500.00, having increased 4.4%, ETH reached 1830.00, having risen by 1.8% in price, and BNB is testing the level of 305.00, having risen by a symbolic 0.3%.
Gold Prices
The price of gold is adjusted at the level of 1870.00, completing the growth stage the day before, which allowed the asset to reach local highs from May 9. The precious metal is receiving support against the backdrop of a weakening US dollar due to ambiguous publications from ADP and the announced publication of May data on the employment market of the United States. Gold keeps consumer interest at a sufficient level on the part of investors, because high risks of global inflation remain. Earlier it became known that the eurozone states approved another block of economic restrictions against the Russian Federation, including a partial ban on oil supplies from Russia.
- Resistance levels: 1866.0, 1917.0.
- Support levels: 1810.0, 1770.0.