USDCAD Analysis
| Performance after Monday | |||||
| Period | Pct | Chg | Momentum | ||
| Monday | -0.01% | -1.3 Pips |  |
||
| Week to-date | 0% | 0.7 Pips | |
||
| March | -0.66% | -96 Pips | |
||
Upcoming key events (London Time)
Wed 12:30 PM USD CPI Inflation Rate (12-mth)
Wed 01:45 PM CAD Bank of Canada Policy Interest Rate
What happened lately
On Monday, the USDCAD currency pair experienced a marginal decline of 0.01% to settle at 1.43660, indicating the pair is currently in a state of consolidation. There were no major economic events reported that day to influence this movement significantly.
In the United States, a significant upcoming economic indicator is the Consumer Price Index (CPI) Inflation Rate, set to be released on Wednesday at 12:30 PM. This data plays a crucial role in assessing inflationary pressures within the economy. A higher-than-expected inflation rate could strengthen the US dollar as it may prompt the Federal Reserve to consider monetary policy tightening. Conversely, a lower inflation rate might weaken the dollar, mitigating any inflationary concerns.
In Canada, attention is drawn to the Bank of Canada’s Policy Interest Rate announcement, scheduled for Wednesday at 01:45 PM. The decision from the Bank of Canada (BoC) will provide insights into its monetary policy direction and economic outlook. If the BoC opts for rate hikes, the Canadian dollar could strengthen, whereas maintaining or lowering rates might weaken it in the currency markets.
Regarding the USDCAD currency pair, the upcoming US CPI Inflation Rate and the Bank of Canada’s Policy Interest Rate decisions will likely introduce heightened volatility. If the US inflation figures are higher and the BoC maintains or cuts rates, the US dollar might appreciate against the Canadian dollar, potentially leading to an increase in the USDCAD pair. Conversely, if US inflation falls short of expectations and the BoC adopts a hawkish stance by raising rates, it could lead to a stronger Canadian dollar, driving the USDCAD currency pair lower. The delicate balance between these economic indicators will be crucial in determining near-term movements for USDCAD. Both events are high-impact, suggesting the potential for substantial currency fluctuations depending on their outcomes and the market’s expectations. Overall, traders and investors in the forex market will keenly monitor these releases for further direction.
Latest from X (Twitter)
What can we expect from USDCAD today?
USDCAD on Monday dropped -0.01% to 1.43660. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCAD looks mixed as the pair is likely to consolidate above 1.43577 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.43830 or trades above daily pivot 1.43703. Break above could target R1 at 1.43787. While to the downside, we are looking at 1.43577 (S1) and daily low of 1.43620 as support levels. USDCAD need to break on either side to indicate a short-term bias. A close below 1.43620 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 | 1.43997 |
| R2 | 1.43913 |
| R1 | 1.43787 |
| Daily Pivot | 1.43703 |
| S1 | 1.43577 |
| S2 | 1.43493 |
| S3 | 1.43367 |
#USDCAD Trending on Twitter
[custom-twitter-feeds hashtag=”#USDCAD” num=3 showheader=false]