USD/CAD attracts some sellers below 1.3500, eyes on US Retail Sales, BoC’s Macklem speech

USD/CAD loses ground around 1.3488 after the Federal Reserve's (Fed) meeting.
As widely expected, the Fed maintained the Fed funds target range steady at its December meeting.
A rebound in oil prices lends some to the commodity-linked Lonnie.
Investors await US weekly Jobless Claims and Retail Sales.

Lallalit Srijandorn FXStreet

The USD/CAD pair extends its downside below the 1.3500 mark during the early Asian session on Thursday. The decline of the US Dollar (USD) following the Federal Reserve (Fed) weighs on the pair. At press time, USD/CAD is trading at 1.3488, down 0.07% for the day.

The Fed held the fed funds target range steady at 5.25%–5.5% for a third consecutive meeting on Wednesday due to easing labour demand and slowing inflation readings over recent months. The interest rate projection showed the possibility of the Fed cutting before the middle of next year has increased. The Fed now anticipates three rate cuts next year rather than two. This, in turn, exerts some selling pressure on the USD and acts as a tailwind for the GBP/USD pair.

Apart from this, the US Core Producer Price Index (PPI) for November came in worse than market expectations, easing from 2.3% to 2.0% YoY. The headline PPI figure dropped 0.9% from a 1.2% rise in the previous reading.

On the other hand, a recovery in oil prices lends some to the commodity-linked Lonnie. That being said, the Organisation of the Petroleum Exporting Countries (OPEC) report raised its global growth economic forecasts, which eased concerns about the oil demand outlook in 2024.

Last week, the Bank of Canada (BoC) left its benchmark interest rate on hold at a 22-year high of 5.0%. Money markets anticipate the Canadian central bank to begin easing as soon as April and cut the rate to a total of 90 basis points (bos) in 2024. However, the BoC said it was premature to consider rate cuts.

On Thursday, the US weekly Jobless Claims and Retail Sales will be released. On Friday, the US S&P Global PMI data will be due, and BoC Governor Tiff Macklem is set to speak in the American session. These events could give a clear direction to the USD/CAD pair.

USD/CAD

Overview
Today last price	1.3494
Today Daily Change	-0.0005
Today Daily Change %	-0.04
Today daily open	1.3499

Trends
Daily SMA20	1.3617
Daily SMA50	1.3683
Daily SMA100	1.3594
Daily SMA200	1.3514

Levels
Previous Daily High	1.3608
Previous Daily Low	1.3495
Previous Weekly High	1.362
Previous Weekly Low	1.348
Previous Monthly High	1.3899
Previous Monthly Low	1.3541
Daily Fibonacci 38.2%	1.3538
Daily Fibonacci 61.8%	1.3565
Daily Pivot Point S1	1.346
Daily Pivot Point S2	1.3421
Daily Pivot Point S3	1.3347
Daily Pivot Point R1	1.3573
Daily Pivot Point R2	1.3647
Daily Pivot Point R3	1.3686

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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