USD/CAD finds support near 1.33 as attention turns to Canadian inflation data

  • USD/CAD stays under pressure on Wednesday.
  • US Dollar Index returns below the 97 handle.
  • Annual CPI in Canada is expected to rise to 1.9% in March.

After spending the Asian session in a tight range near mid-1.33s, the USD/CAD pair lost its traction during the European trading hours and slumped to a daily low of 1.3306 before going into a consolidation phase. As of writing, the pair was down 0.22% on a daily basis at 1.3322.

Since the start of the week, the loonie struggled to stay resilient against the buck amid a lack of disappointing macroeconomic data releases. Yesterday, Statistics Canada reported a contraction in manufacturing sales and earlier in the week the Bank of Canada's Business Outlook Survey showed that the business sentiment deteriorated in the first quarter of the year.

Meanwhile, the fact that the barrel of West Texas Intermediate is trading in the upper half of its weekly range above the $64 mark is making it difficult for the pair to gain traction and post meaningful gains.

Later in the session, the inflation report from Canada will be looked upon for fresh impetus. Markets expect the annual Consumer Price Index to advance to 1.9% in March from 1.5% in April. Although investors are expecting the BoC to stay in the wait-and-see mode regardless of the CPI reading, a higher-than-expected reading could help the CAD outperform its American counterpart in the near-term.

On the other hand, the only data from the U.S. will be the trade balance. Later in the day, the Fed is scheduled to publish its Beige book.

Technical levels to consider


Today last price 1.3322
Today Daily Change -0.0030
Today Daily Change % -0.22
Today daily open 1.3352
Daily SMA20 1.336
Daily SMA50 1.3312
Daily SMA100 1.334
Daily SMA200 1.3208
Previous Daily High 1.3404
Previous Daily Low 1.3346
Previous Weekly High 1.3398
Previous Weekly Low 1.3284
Previous Monthly High 1.3469
Previous Monthly Low 1.313
Daily Fibonacci 38.2% 1.3368
Daily Fibonacci 61.8% 1.3382
Daily Pivot Point S1 1.3331
Daily Pivot Point S2 1.331
Daily Pivot Point S3 1.3274
Daily Pivot Point R1 1.3388
Daily Pivot Point R2 1.3424
Daily Pivot Point R3 1.3445



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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD steady around 1.1240 in ultra-thin holiday's trading

The EUR/USD pair bounced some 20 pips from its weekly low during the Asian session, now mute around 1.1240 with most market's off today. Softer-than-expected US housing data passed unnoticed.


GBP/USD battling around 1.3000

The GBP/USD pair is heading nowhere fast after bottoming for the week at 1.2978, amid lack of progress in Brexit negotiations.  Encouraging UK data failed to trigger Pound's demand.


USD/JPY: On track to close in the middle of its 50-pip weekly range below 112

The USD/JPY pair remains frozen below the 112 handle in the NA session and there is no reason for it to make a meaningful move as investors are already enjoying the Easter holiday.


The Tale of the Prosperous Consumer-US Retail Sales

American consumers asserted the right to spend in a grand fashion in March boosting retail sales to the fastest expansion in 18 months as the booming job market put the shutdown marked holiday season to rest.

Read more

Gold Forecast: Eyes 8-month rising trendline after weakest weekly close since December

The troy ounce of the precious metal lost around $17 this week and now looks to record its lowest weekly close since the end of December near $1275.

Gold News