USDCAD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.41% | -57.8 Pips |  |
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| Week to-date | -0.4% | -56.8 Pips |  |
||
| November | 0.58% | 81 Pips |  |
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Upcoming key events (London Time)
Tue 01:30 PM CAD CPI Inflation Rate (12-mth)
What happened lately
Currently, there are no major economic events that have been reported. In Canada, however, the upcoming Consumer Price Index (CPI) inflation rate is scheduled to be released on Tuesday at 01:30 PM. This report is highly anticipated as it will provide insights into the inflation dynamics within the Canadian economy. The CPI measures changes in the price level of a basket of consumer goods and services purchased by households. A higher-than-expected CPI could signal rising inflationary pressures, potentially leading to adjustments in monetary policy by the Bank of Canada. A lower-than-expected CPI, on the other hand, may indicate that inflation remains under control, which could affect decisions on interest rates.
On Monday, USDCAD fell by 0.41% to 1.40162. The upcoming Canadian CPI inflation rate announcement represents a significant economic event that traders and investors will watch closely as it may influence currency markets. Should the CPI data indicate higher inflation, speculations of monetary policy tightening by the Bank of Canada could lead to a stronger Canadian dollar. This scenario may apply downward pressure on the USDCAD pair, continuing the trend observed on Monday. Conversely, if the CPI suggests subdued inflation, the possibility of sustained monetary policy could weaken the loonie, bolstering the USDCAD pair. Therefore, the Canadian CPI inflation release could create volatility in the forex market, particularly impacting the USDCAD exchange rate into and beyond Tuesday.
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What can we expect from USDCAD today?
USDCAD on Monday dropped -0.41% to 1.40162. Price is above 9-Day EMA while Stochastic is falling.
Updated daily direction for USDCAD looks bearish as the pair posted lower in Monday trading session.
Looking ahead for the day, immediate support level is at S1 1.3976 with break below could see further selling pressure towards S2 at 1.39357. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.41025 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.39990 would indicate selling pressure.
For the week to-date, take note that USDCAD is mixed as compared to the prior week.
Key levels to watch out:
| R3 | 1.4183 |
| R2 | 1.41427 |
| R1 | 1.40795 |
| Daily Pivot | 1.40392 |
| S1 | 1.3976 |
| S2 | 1.39357 |
| S3 | 1.38725 |
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