USD/CAD retreat lower after hitting 1.2900 handle resistance
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USD/CAD stays in the range between the 1.2750 and 1.2900 levels as the greenback hits a new multi-week high.
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The FOMC’s minutes is the next market-mover scheduled for 18:00 GMT.
The Loonie rose steadily in Asia and early Europe to print an intraday high at 1.2917 which is a major resistance level. About an hour after the New York forex session opened, USD/CAD fell about 60 pips from its intraday ceiling and is currently trading at around up 1.2867 up 0.37% this Wednesday.
The US Dollar Index (DXY) which measures the greenback relative to a basket of currencies pushed higher yet again today to print a new multi-week high at 94.12. The buck remains extremely well-bid as investors expect the Federal Reserve Bank to raise interest rates at least three to four times in 2018. In fact, investors will closely scrutinize the FOMC’s minutes to have clues that growth and inflation are on-track in the United States. The report is released at 18:00 GMT this Wednesday.
On the other hand, the Canadian dollar which is tightly correlated to oil prices is having a mild boost as crude oil is rebounding from 61.60 intraday low. The Energy Information Administration (EIA) oil stockpile change weekly data can affect CAD as well. It is due at 14:30 GMT this Wednesday.
USD/CAD 4-hour chart
USD/CAD remains rather neutral evolving in a range between the 1.2750 and 1.2900 levels. The main moving averages are flat and the major support is seen at the 1.2800 handle and at 1.2773 swing low while resistances are seen at the 1.2900 figure and 1.2926 swing high.
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