USDCAD Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | 0.15% | 22.1 Pips |  |
||
| Week to-date | 0.82% | 117 Pips | |
||
| February | -1.27% | -184 Pips |  |
||
Upcoming key events (London Time)
Thu 01:30 PM USD GDP annual rate
Fri 01:30 PM CAD GDP (12-mth) Fri 01:30 PM USD PCE Price Index, excluding food and energy (12-mth)
What happened lately
In the United States, the housing market has shown signs of slowing down as new-home sales in January decreased significantly by 10.5%, following a revised increase of 8.1% in December (initially reported as 3.6%). This sharp decline indicates a potential cooling in housing demand, possibly influenced by external factors such as higher mortgage rates or economic uncertainties. Additionally, the U.S. House Price Index remained static at a 0.4% monthly increase in December, reflecting a stabilization in housing prices after previous growth. These developments in the housing sector could affect consumer confidence and spending, potentially impacting broader economic activities.
The news about the U.S. housing market can influence the USDCAD exchange rate. The declining new-home sales and stable house prices might signal to investors that the U.S. economy is facing some challenges. As a result, expectations for future interest rate hikes might be tempered, potentially weakening the U.S. dollar. However, this effect might be counterbalanced by other ongoing economic indicators and market expectations. Since USDCAD rose slightly by 0.15% to 1.43320 on Wednesday, it indicates some existing demand for the U.S. dollar relative to the Canadian dollar. Future movements in USDCAD will likely depend on upcoming economic data releases, such as the U.S. GDP figures and the PCE Price Index, alongside the Canadian GDP report. Market participants will be closely monitoring these releases to assess economic health and make informed decisions about currency positions.
Latest from X (Twitter)
What can we expect from USDCAD today?
USDCAD on Wednesday rose 0.15% to 1.43320. Price is above 9-Day EMA while Stochastic is rising in overbought zone.
Updated daily direction for USDCAD looks bullish as the pair ended higher after Wednesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 1.43701 with break above could target R2 at 1.44083 or figure level area. While towards the downside, we are looking at daily low of 1.42900 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.43682 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCAD is bullish as the pair continued to trade higher and is up by 0.82% over the past few days.
Key levels to watch out:
| R3 | 1.44483 |
| R2 | 1.44083 |
| R1 | 1.43701 |
| Daily Pivot | 1.43301 |
| S1 | 1.42919 |
| S2 | 1.42519 |
| S3 | 1.42137 |
#USDCAD Trending on Twitter
[custom-twitter-feeds hashtag=”#USDCAD” num=3 showheader=false]