USD/CAD holds positive ground above 1.3650, focus on Fedspeak


  • USD/CAD gains ground around 1.3680 in Friday’s early European European session. 
  • Fed’s Logan said it’s not clear if policy is tight enough to bring inflation down, adding it’s too soon to cut rates. 
  • The Canadian economy added 90,000 jobs in April, above the consensus of 20,000 gains. 

The USD/CAD pair recovers some lost ground near 1.3680 during the early European session on Monday. Meanwhile, the USD Index (DXY) holds positive ground around 105.30 ahead of the US key economic data. The final reading of the US Consumer Price Index (CPI) will be due on Wednesday, which is expected to show an increase of 3.4% over the year in April, compared to a 3.5% annual rise in March.

The US Federal Reserve (Fed) officials said they are waiting for evidence that inflation is on a downward trajectory before the central bank considers cutting the fed funds rate from the 23-year high. Dallas Fed President Lorie Logan said that it’s not clear if monetary policy is tight enough to bring inflation down to the 2% target and it is too soon to be cutting interest rates. 

Additionally, San Francisco Fed President Mary Daly emphasized the need for prolonged restrictive policy to achieve the Fed's inflation targets. Minneapolis Fed President Neel Kashkari stated that he's in a "wait-and-see mode,” and there is a "high" bar to concluding that higher rates are needed to cool inflation. The cautious approach of the Fed officials provides some support to the Greenback and acts as a tailwind for the USD/CAD pair. 

On the other hand, the Canadian economy added 90,000 jobs in April. This figure registered the strongest increase in 15 months and beat the estimation of 20,000 gains, according to Statistics Canada. Furthermore, the Unemployment Rate held at 6.1% in April. The resilience of the labor market affords the Bank of Canada (BoC) more time to wait to ensure that inflation will be sustained. However, the decline in crude oil prices exerts some selling pressure on the Loonie, as Canada is the leading exporter of oil to the United States

USD/CAD

Overview
Today last price 1.3682
Today Daily Change 0.0009
Today Daily Change % 0.07
Today daily open 1.3673
 
Trends
Daily SMA20 1.3715
Daily SMA50 1.3622
Daily SMA100 1.3529
Daily SMA200 1.3563
 
Levels
Previous Daily High 1.3691
Previous Daily Low 1.3618
Previous Weekly High 1.3763
Previous Weekly Low 1.3618
Previous Monthly High 1.3846
Previous Monthly Low 1.3478
Daily Fibonacci 38.2% 1.3646
Daily Fibonacci 61.8% 1.3663
Daily Pivot Point S1 1.363
Daily Pivot Point S2 1.3588
Daily Pivot Point S3 1.3558
Daily Pivot Point R1 1.3703
Daily Pivot Point R2 1.3733
Daily Pivot Point R3 1.3776

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

GBP/USD consolidates above 1.2700 mark as traders await BoE policy update

GBP/USD consolidates above 1.2700 mark as traders await BoE policy update

GBP/USD ticks lower on Thursday and snaps a three-day winning streak to the weekly top. The USD draws support from rebounding US bond yields and exerts pressure on the major. The downtick lacks follow-through as traders look to the BoE before placing directional bets.

GBP/USD News

EUR/USD escapes Wednesday’s holiday volatility trap, set for wait to meaningful data

EUR/USD escapes Wednesday’s holiday volatility trap, set for wait to meaningful data

EUR/USD cycled on Wednesday with US markets out for a midweek holiday, and the Fiber heads into the back half of the trading week with mid-tier data on the offering, leaving investors to look ahead to Friday’s PMI activity figures for meaningful data releases to drive sentiment in either direction.

EUR/USD News

Gold: Will XAU/USD buyers recapture key resistance near $2.340?

Gold: Will XAU/USD buyers recapture key resistance near $2.340?

Gold price regains upside traction early Thursday after the Juneteenth holiday lull. The US Dollar pauses its decline as Treasury bond yields edge higher amid risk aversion. The daily RSI gradually moves above the midline, supporting the Gold price upside.

Gold News

Bitcoin price continues to plummet as whale activities deepen

Bitcoin price continues to plummet as whale activities deepen

Bitcoin's price fell below $65,000 on Wednesday following Increased whale activities that may be sell orders. Meanwhile, hedge funds have experienced a drag in their Bitcoin exposure, which may be fueled by consistent outflows among Bitcoin ETFs.

Read more

Will the BoE signal that rate cuts are looming?

Will the BoE signal that rate cuts are looming?

At its latest gathering, the Bank of England appeared dovish enough to encourage market participants to assign a decent chance for a first quarter-point rate cut in June, but that didn’t last for long as the hotter-than-expected inflation data for April prompted investors to take their summer rate cut bets off the table.

Read more

Forex MAJORS

Cryptocurrencies

Signatures