USD/CAD advances to near 1.3700 as US Dollar remains firmer

USD/CAD gains ground due to the expectations of the Fed keeping higher rates for longer.
US Treasury yields lost ground after the release of weak US Initial Jobless Claims on Thursday.
BoC Governor Tiff Macklem highlighted the resilience of the financial system following the release of the Financial Stability Report.

Akhtar Faruqui FXStreet

The USD/CAD pair edges higher to near 1.3690 during the Asian trading hours on Friday. The upward correction in the US Dollar (USD) supported the pair, which could be attributed to the hawkish sentiment surrounding the Federal Reserve (Fed) to keep higher interest rates for an extended period.

However, the Greenback faced a challenge due to the lower US Treasury yields, which could be attributed to the weak US Initial Jobless Claims released on Thursday. The US Bureau of Labor Statistics (BLS) released data indicating that the number of individuals filing for unemployment benefits exceeded expectations. Initial Jobless Claims for the week ending May 3 rose to 231,000, surpassing estimates of 210,000 and showing an increase from the previous week's reading of 209,000.

Furthermore, the preliminary Michigan Consumer Sentiment Index for May is due on Friday, with forecasts indicating a slight decrease. This index is a survey that evaluates sentiment among US consumers, encompassing three primary areas: personal finances, business conditions, and buying conditions.

On the Canadian side, the Bank of Canada (BoC) released its Financial System Review (FSR) on Thursday. BoC Governor Tiff Macklem emphasized that Canada's financial system remains resilient. However, Macklem cautioned about potential volatility in global markets as expectations evolve regarding the extent and timing of rate cuts. He also noted that financial institutions still have adjustments to make to higher rates and potential shocks, which pose risks to financial stability.

BoC Deputy Governor Carolyn Rogers additionally observed that while the number of small businesses reporting insolvencies has risen, the Bank of Canada (BoC) does not perceive this as having broader implications for the Canadian economy.

The improved crude Oil prices may provide support for the Canadian Dollar (CAD) as Canada is the largest Oil exporter to the United States (US), limiting the advance of the USD/CAD pair. Western Texas Intermediate (WTI) Oil price trades around $79.40 on Friday. The black Gold edges higher amid optimism about rising demand in China and the US, the world's two biggest crude-consuming nations.

USD/CAD

Overview
Today last price	1.3688
Today Daily Change	0.0011
Today Daily Change %	0.08
Today daily open	1.3677

Trends
Daily SMA20	1.372
Daily SMA50	1.362
Daily SMA100	1.3525
Daily SMA200	1.3562

Levels
Previous Daily High	1.3738
Previous Daily Low	1.3675
Previous Weekly High	1.3785
Previous Weekly Low	1.361
Previous Monthly High	1.3846
Previous Monthly Low	1.3478
Daily Fibonacci 38.2%	1.3699
Daily Fibonacci 61.8%	1.3714
Daily Pivot Point S1	1.3655
Daily Pivot Point S2	1.3633
Daily Pivot Point S3	1.3592
Daily Pivot Point R1	1.3719
Daily Pivot Point R2	1.376
Daily Pivot Point R3	1.3782

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

AUD/USD holds above 0.7000 ahead of FOMC policy meeting

AUD/USD attracts some dip-buyers near 0.7000 during the Asian session on Tuesday, stalling the previous day's pullback from a one-month high as bets for a November RBA rate hike continue to act as a tailwind for the Aussie. Meanwhile, the US Dollar consolidates gains from the past two days ahead of the crucial two-day FOMC meeting starting later today, further supporting the currency pair.

USD/JPY consolidates above 157.50 as traders await Fed, BoJ meetings

USD/JPY trades above mid-157.00s during the Asian session on Tuesday, looking to build on its recovery from an over one-month low as speculation that the BoJ may hold off on aggressive rate hikes undermines the Japanese Yen. Meanwhile, the US Dollar sits near a one-week high, further supporting the currency pair. Bulls, however, seem hesitant ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday.

Gold trades above $4,000 and a three-month low as focus remains on FOMC

Gold attracts fresh sellers during the Asian session on Tuesday, reversing part of the previous day's modest recovery from a three-month low. US bond yields rebound slightly after the recent decline to a three-week low, helping the US Dollar preserve its gains recorded over the past two days and weighing on the non-yielding bullion. The commodity, however, holds above $4,000 as bears seem hesitant ahead of Wednesday’s FOMC rate decision.

Bitcoin faces $77,000 support test as Fed decision nears

Bitcoin (BTC) is testing key support levels after falling to $79,250 over the weekend, with persistent selling pressure and uncertainty over the Federal Reserve’s (Fed) interest rate decision likely to prolong the top crypto's decline, according to Bitfinex analysts.

Everyone's bracing for a hawkish central bank week. Here's why the surprise could be dovish

Five of the world's major central banks are preparing to announce monetary policy decisions this week, with investors increasingly anticipating higher interest rates as the global energy shock continues to push inflation above target.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.