USD/CAD clings to mild losses below 1.3570, awaits BoC’s decision, US CPI

USD/CAD remains silent amid market caution ahead of BoC’s policy decision.
BoC is expected to maintain its current policy rate at 5.0% on Wednesday.
The decline in US Treasury yields contributes to undermining the US Dollar.

Akhtar Faruqui FXStreet

USD/CAD seems to remain tepid amid firmer US Dollar (USD) and Crude oil prices. The pair inches lower to near 1.3570 during the Asian session on Wednesday. The US Dollar (USD) holds ground despite lower US Treasury yields.

Traders eagerly await the release of the Bank of Canada’s (BoC) interest rate decision, with expectations of remaining unchanged at 5.0%. Additionally, US Consumer Price Index (CPI) data and the FOMC Minutes are scheduled to be released later in the North American session.

Crude oil prices encountered hurdles that potentially weighed on the Canadian Dollar (CAD). The impasse in Gaza ceasefire negotiations revived concerns about the security of supplies from the Middle East, counteracting a larger-than-anticipated increase in US Crude inventories. West Texas Intermediate (WTI) oil price hovers around $84.70 per barrel, by the press time.

The US Dollar (USD) encounters challenges amid lower US Treasury yields. At the time of writing, the US Dollar Index (DXY) consolidates around 104.10, with 2-year and 10-year yields on US Treasury bonds at 4.73% and 4.35%, respectively.

Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari reiterated the central bank's commitment to combatting inflation. Kashkari stressed the importance of bringing the current inflation rate, hovering around 3%, back down to the target level of 2%.

Investors adopt a cautious stance, expecting potential policy shifts influenced by incoming data. Strong labor market figures from last week could lead to a more hawkish stance from the Federal Reserve if inflation exceeds expectations.

USD/CAD

Overview
Today last price	1.3566
Today Daily Change	-0.0005
Today Daily Change %	-0.04
Today daily open	1.3571

Trends
Daily SMA20	1.3552
Daily SMA50	1.3522
Daily SMA100	1.3483
Daily SMA200	1.3508

Levels
Previous Daily High	1.3599
Previous Daily Low	1.3547
Previous Weekly High	1.3648
Previous Weekly Low	1.3478
Previous Monthly High	1.3614
Previous Monthly Low	1.342
Daily Fibonacci 38.2%	1.3567
Daily Fibonacci 61.8%	1.3579
Daily Pivot Point S1	1.3546
Daily Pivot Point S2	1.3521
Daily Pivot Point S3	1.3494
Daily Pivot Point R1	1.3597
Daily Pivot Point R2	1.3624
Daily Pivot Point R3	1.3649

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.

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