Economic Events Outlook, Nov 30 – How to Trade G20 Summit & Canadian GDP Today?
Arslan Butt • 2 min read
Happy Friday, Traders.
In the forex market, the volatility and trading volume is likely to remain thin as most of the investors focus on the G20 meeting which starts today and ends tomorrow. However, we may still have a chance to trade the Canadian currency pairs. Watch out for the trading plans…
USD/CAD – Trading the GDP Figures
The Loonie remains under the spotlight in the wake of GDP figures. Canada’s growth story this year has been good, and the underlying strength is set to continue. But the recent plunge in crude oil prices can cause drag in the Canadian dollar.
Statistics Canada is due to release the growth figures from September and, more importantly, the third quarter. The figures are forecast to expand at 0.3% MoM and 2.2% QoQ (annualized) respectively. Third quarter GDP, though still robust, is unlikely to be as shiny as the 2.9% posted in the second quarter due to trade war impact.
The technical side of the market is still showing a bullish trend. The USD/CAD plunged to $1.3190 to trade in the oversold zone. For now, the bullish trendline is extending a strong support to USD/CAD at $1,3180.
In fact, the pair is trading in a bullish channel on the 3-hour chart. On the violation of $1.3180, loonie can go after $1.3160.
Daily Technical Levels
Key Trading Level: 1.3206
USD/CAD – Trade Plan
I’m looking to open a buy position above $1.3240 with a stop loss below $1.3100 and take profit of $1.3325.
G20 Summit (Friday & Saturday) – Trade War In Focus
Today and tomorrow, nineteen leaders of the world’s biggest economies and a representative of the European Union are set to meet in Buenos Aries, Argentina, as part of the Group of 20 summit.
The market hopes that the meeting could open the way for a settlement over trade between the two countries, which has been undermined by recent threats by the US president.
Barely days before the G20 summit, President Trump said current tariff levels on $200bn of Chinese imports would rise as planned. For your information, his plan is to raise the tariff rate from 10% to 25%.
If the dispute between China and the US continues to intensify, we may see a sharp buying in the US dollar, along with sell-off in stock markets and gold.
Whereas, if the US agrees to keep the tariffs at 10%, we may see a dramatic sell-off in the dollar, along with buying in stock markets and gold. So, tighten your seat belts to ride the volatility.
Stay tuned to FX Leaders for more updates!