USDCAD Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | 0.01% | 1.9 Pips |  |
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| Week to-date | -0.77% | -108 Pips |  |
||
| May | 0.47% | 65 Pips | |
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Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, the latest data from the Department of Labor indicates a slight decrease in Initial Unemployment Insurance Claims, dropping to 227,000 in the week ending 17 May, down from the previous figure of 229,000. This marginal decline suggests a subtle improvement in the labor market, reflecting a steady state in employment conditions. Despite this, the change is minor and does not signify significant shifts in labor dynamics. The overall economic environment remains relatively stable with no immediate major economic events on the horizon for the day, leading to a cautious market outlook.
Regarding the USDCAD exchange rate, the pair saw a slight uptick of 0.01%, reaching 1.38579. Despite the rise, the pair is in a consolidation phase, indicating a lack of directional momentum. The slight movement can be attributed to standard market fluctuations in the absence of major economic catalysts or news. In light of the minimal decrease in unemployment claims, the U.S. dollar experiences a mild influence, which when paired with the Canadian dollar, results in this negligible change. Given the current economic stability and absence of impactful events, the USDCAD is likely to remain relatively stable unless driven by unforeseen economic developments or geopolitical factors.
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What can we expect from USDCAD today?
USDCAD on Thursday rose 0.01% to 1.38579. 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 1.38363 (S1).
Looking ahead today, to see upside interest, we prefer to look at price breakout of last daily high of 1.38890 or trades above daily pivot 1.38626. Break above could target R1 at 1.38843. While to the downside, we are looking at 1.38363 (S1) and daily low of 1.38410 as support levels. USDCAD need to break on either side to indicate a short-term bias. A break above 1.38890 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCAD is bearish as the pair posted lower by -0.77%.
Key levels to watch out:
| R3 | 1.39323 |
| R2 | 1.39106 |
| R1 | 1.38843 |
| Daily Pivot | 1.38626 |
| S1 | 1.38363 |
| S2 | 1.38146 |
| S3 | 1.37883 |
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