Forex News

06:21:17 18-03-2024

USD/CAD inches higher to near 1.3540, focus on Canadian CPI, Fed policy

  • USD/CAD appreciates to continue its winning streak on Monday.
  • US Dollar could gain ground on expectations of the Fed maintaining higher interest rates to combat inflation.
  • The higher WTI price could limit the losses of the Canadian Dollar.

USD/CAD kicks off the week with its third consecutive day of gains on Monday, inching higher to near 1.3540 during the Asian trading session. The US Dollar (USD) could be bolstered by expectations that the Federal Reserve (Fed) will uphold its narrative of maintaining higher interest rates to combat inflation, which could further mitigate significant downside for the USD/CAD pair. The Fed is also set to update its Dot Plot projection, outlining interest rate expectations for the next one to five years.

Meanwhile, the US Dollar Index (DXY) struggles to sustain its position in positive territory, hovering around 103.50 at the time of writing. However, downward pressure on the US Dollar is evident due to a correction in US Treasury yields. The 2-year and 10-year US Treasury yields are currently at 4.72% and 4.30%, respectively.

On the flip side, the Canadian Dollar (CAD) may find some support from the surge in Crude oil prices. West Texas Intermediate (WTI) oil price continues its upward climb, reaching near $80.90 per barrel, by the press time. The positive momentum in Crude oil prices is driven by concerns over supply disruptions due to heightened geopolitical risks.

Traders are likely anticipating the release of the Canadian Consumer Price Index (CPI) data scheduled for Tuesday. Expectations suggest that the year-over-year consumer price will show an increase in February. A higher reading in the CPI could contribute a bullish sentiment for the Loonie Dollar (CAD). Additionally, the US Manufacturing Purchasing Managers Index (PMI) is set to be released on Thursday.

USD/CAD

Overview
Today last price 1.3538
Today Daily Change -0.0006
Today Daily Change % -0.04
Today daily open 1.3544
 
Trends
Daily SMA20 1.352
Daily SMA50 1.3483
Daily SMA100 1.3517
Daily SMA200 1.3481
 
Levels
Previous Daily High 1.3552
Previous Daily Low 1.351
Previous Weekly High 1.3552
Previous Weekly Low 1.3459
Previous Monthly High 1.3606
Previous Monthly Low 1.3366
Daily Fibonacci 38.2% 1.3536
Daily Fibonacci 61.8% 1.3526
Daily Pivot Point S1 1.3519
Daily Pivot Point S2 1.3494
Daily Pivot Point S3 1.3477
Daily Pivot Point R1 1.3561
Daily Pivot Point R2 1.3577
Daily Pivot Point R3 1.3602

 

 

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