Usd to Cad shows slight increase amid mixed economic data

USDCAD Analysis

Performance after Tuesday
Period	Pct	Chg	Momentum
Tuesday	0.02%	2.7 Pips
Week to-date	-0.17%	-25 Pips
March	-0.97%	-140 Pips

Upcoming key events (London Time)

Thu 12:30 PM USD GDP annual rate

What happened lately

In the United States, there is an upward trend in the real estate market, demonstrated by an increase of 1.8% in new-home sales during February. This follows a notable decline of 6.9% in January, which was initially reported as a greater drop of 10.5%. On the other hand, the U.S. House Price Index saw a decrease to 0.2% in January from a previous 0.5%, indicating some softening in housing prices. This revision, however, is smaller than the earlier reported 0.4% in December. Overall, while there is some recovery in home sales, the drop in the House Price Index may reflect ongoing challenges and a more cautious outlook in the housing market.

The movements in the USDCAD rate can be influenced by these economic indicators. With the modest rise in U.S. new-home sales pointing to resilient consumer demand, and the decline in house prices suggesting some cooling in the housing market, these factors provide a mixed backdrop for the currency pair. As such, the minor uptick of 0.02% in USDCAD to 1.43190 reflects a period of consolidation, wherein investors are balancing positive sales data with falling house prices. Further potential movements in USDCAD will likely depend on upcoming economic releases, such as the U.S. GDP annual rate data scheduled for release. As investors and analysts closely watch these figures, they will significantly influence trading sentiment around the USDCAD pair. If GDP data shows economic strength, it may further strengthen the USD against the CAD, while any signs of economic weakness might limit further appreciation or even lead to a depreciation in the pair.

Latest from X (Twitter)

Tweets by Statistics Canada

What can we expect from USDCAD today?

USDCAD on Tuesday rose 0.02% to 1.43190. Price is below 9-Day EMA while Stochastic is rising.

Updated daily direction for USDCAD looks mixed as the pair is likely to consolidate above 1.43129 (S1).

Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.43234 or trades above daily pivot 1.43181. Break above could target R1 at 1.43243. While to the downside, we are looking at 1.43129 (S1) and daily low of 1.43120 as support levels. USDCAD need to break on either side to indicate a short-term bias. A break above 1.43234 may suggest continuation after recent positive movement.

For the week to-date, take note that USDCAD is mixed as compared to the prior week.

Key levels to watch out:

#USDCAD Trending on Twitter

[custom-twitter-feeds hashtag=”#USDCAD” num=3 showheader=false]