USD/CAD drops to 1.3160 area as focus shifts to FOMC


  • USD/CAD struggles to make a decisive move in either direction.
  • US Dollar Index struggles to hold above 93.00.
  • Investors wait for FOMC's Interest Rate Decision and Monetary Policy Statement.

The USD/CAD pair gained traction in the early American session and climbed toward 1.3200. However, the pair struggled to preserve its momentum and was last seen losing 0.15% on the day at 1.3162.

DXY retreats below 93.00 after modest rebound

Earlier in the day, the data published by Statistics Canada showed that the annual Consumer Price Index (CPI) in Canada remained unchanged at 0.1% in August. On the other hand, Retail Sales in the US increased by 0.6% and the NAHB Housing Market Index improved to 83 and beat the market expectation of 78.

Nevertheless, the market reaction to these data was mixed with investors opting out to remain on the sidelines while waiting for the FOMC to announce its policy decisions following the September meeting.

The US Dollar Index, which dropped below 92.80 earlier in the day, turned positive above 93.00 in the last hour but returned to 92.90 area, reaffirming the indecisive market action. 

Previewing this key event, "given the fact that markets do not expect the Fed to tighten monetary policy anytime soon, the FOMC may not be in a hurry to provide specific numbers or dates," said Rabobank analysts. "A significant setback in the economic recovery would force the Fed to rethink its monetary policy stance." 

Federal Reserve Preview: 15 major banks expectations.

Meanwhile, the barrel of West Texas Intermediate is gaining more than 3% on Wednesday, helping the commodity-sensitive CAD stay resilient against its rivals.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3167
Today Daily Change -0.0019
Today Daily Change % -0.14
Today daily open 1.3186
 
Trends
Daily SMA20 1.3145
Daily SMA50 1.3301
Daily SMA100 1.3523
Daily SMA200 1.352
 
Levels
Previous Daily High 1.3202
Previous Daily Low 1.3135
Previous Weekly High 1.326
Previous Weekly Low 1.3053
Previous Monthly High 1.3451
Previous Monthly Low 1.302
Daily Fibonacci 38.2% 1.3177
Daily Fibonacci 61.8% 1.3161
Daily Pivot Point S1 1.3147
Daily Pivot Point S2 1.3107
Daily Pivot Point S3 1.3079
Daily Pivot Point R1 1.3214
Daily Pivot Point R2 1.3242
Daily Pivot Point R3 1.3282

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD trades at fresh September lows

Risk-aversion is the main theme this Monday, amid resurgent coronavirus cases in the Old Continent and the announcement of  new lockdowns. ECB’s Lagarde said the economic recovery in the EU is “very uncertain, uneven and incomplete.”

EUR/USD News

GBP/USD extends slump sub-1.2800

The Pound plunged on a dismal market mood, as PM Johnson acknowledged the kingdom is undergoing a second coronavirus wave. GBP/USD trades at one-week lows around 1.2800.

GBP/USD News

XAU/USD bullish bias starting to fade

Gold prices are testing the bull's commitments at the support structure around $1,906 in what could be a final test before the next leg higher of the bullish trend.

Gold News

Bitcoin needs to defend critical support level at $10,600

Bitcoin was trading inside an ascending triangle pattern between September 3 and September 15, which is created when the price establishes higher lows and a horizontal trendline around the swing highs. 

Read more

WTI plummets to $39, down more than 4%

Crude oil prices closed the previous week sharply higher but erased a large portion of those gains on Monday. As of writing, the barrel of West Texas Intermediate was down 4.2%, the biggest daily percentage decline in nearly two weeks, at $39.15.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures