USD/CAD continues to remain sideways around 1.3450 as focus shifts to BoC policy


  • USD/CAD is oscillating in a narrow range around 1.3450 as the BoC policy comes under the picture.
  • The upside in the Lonnie asset is restricted by upbeat oil prices while the downside is being supported by a solid US Dollar.
  • The BoC is expected to keep interest rates steady at 4.5% as Canada’s inflation has been steadily declining.

The USD/CAD pair is consistently showing back-and-forth action around 1.3430 in the early New York session. The Loonie asset is struggling to deliver a decisive move as investors are shifting their focus toward the interest rate decision by the Bank of Canada (BoC), which will be announced on Wednesday.

S&P500 futures are showing nominal gains before the opening of the American session. The overall market mood is quite upbeat as the Federal government has successfully eradicated the case of a default by the United States economy.

The US Dollar Index (DXY) has registered a fresh day's high at 104.40. Investors are gung-ho for the USD Index as consistent higher additions of fresh payrolls in the US labor market is supporting hopes of the continuation of the policy-tightening spell by the Federal Reserve (Fed).

It is worth noting that the Loonie asset is inside the woods despite sheer strength in the USD Index, which indicates that the Canadian Dollar is also strong.

The trigger that has been supporting the Canadian Dollar is the upbeat oil prices after the announcement of fresh oil production cuts seldom by Saudi Arabia. Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, said on Sunday, “Saudi Arabia to make extra 1 million b/d output cut from July.” He further added the Kingdom will extend its 500k barrels per day (b/d) voluntary cut until the end of 2024.

Investors should note that Canada is the leading exporter of oil to the United States and higher oil prices are supporting the Canadian Dollar.

This week, the interest rate policy by the BoC will be keenly watched. BoC Governor Tiff Macklem is expected to keep interest rates steady at 4.5% as Canada’s inflation has been steadily declining. In April, Canada’s inflation was recorded at 4.4%.

USD/CAD

Overview
Today last price 1.3439
Today Daily Change 0.0014
Today Daily Change % 0.10
Today daily open 1.3425
 
Trends
Daily SMA20 1.3505
Daily SMA50 1.3507
Daily SMA100 1.3518
Daily SMA200 1.3507
 
Levels
Previous Daily High 1.3452
Previous Daily Low 1.3407
Previous Weekly High 1.3651
Previous Weekly Low 1.3407
Previous Monthly High 1.3655
Previous Monthly Low 1.3315
Daily Fibonacci 38.2% 1.3424
Daily Fibonacci 61.8% 1.3435
Daily Pivot Point S1 1.3404
Daily Pivot Point S2 1.3383
Daily Pivot Point S3 1.3358
Daily Pivot Point R1 1.345
Daily Pivot Point R2 1.3474
Daily Pivot Point R3 1.3495

 

 

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