- 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
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.