Morning Insights 5th March

Simon Alagbe

Analyst

Instrument: USDCAD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 1.34031 with take profit at 1.34251.

Alternative scenario: Sell position is envisaged if price trades below 1.33829 with take profit at 1.33582.

Fundamentals:

BOC Gov Poloz Speaks 6:45 pm (CAD)

Comment: The BoC reduced the key interest rate by 50 basis points to 1.25%. A cut was expected, the question was by how much. The move was more dovish than expected and weakened the loonie.




Instrument: US.30

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged at current price with take profit at 26982.

Alternative scenario: Sell position is envisaged if price trades below 26602 with take profit at 26335.

Fundamentals:

No major economic data with direct bearing on the index

Comment: U.S. stocks rebounded sharply Wednesday, warming finally to the Federal Reserve’s surprise interest rate cut and support from other central banks, as well as former Vice President Joe Biden becoming the leading Democratic Party’s presidential candidate in November’s election.

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