USD/CAD hovers near 1.3600 ahead of BoC interest rate decision, Fed Powell’s testimony

USD/CAD rises to three-month high around 1.3600 amid a dismal market mood.
The US Dollar rebounds as Fed Powell is expected to deliver hawkish guidance on interest rates.
Investors expected that the BoC will keep interest rates unchanged at 5% for straight fifth time.

Sagar Dua FXStreet

The USD/CAD pair trades close to three-month high near 1.3600 in the late European session on Tuesday. The Loonie asset holds strength as the market mood is cautious ahead of Federal Reserve Chair Jerome Powell’s testimony before Congress on Wednesday and a packed United States economic calendar this week.

S&P 500 futures exhibit significant losses in the early American session, indicating a decline in the risk appetite of the market participants. The US Dollar is slightly bullish after closing in negative territory in the last two trading sessions. The US Dollar Index (DXY) is up 0.08%, around 103.90 ahead of the Fed Powell’s testimony.

Fed Powell is expected to maintain hawkish rhetoric amid less conviction over inflation returning to the 2% target. Powell may reiterate that there is no need of urgency for rate cuts.

But before that, investors will focus on the Institute of Supply Management (ISM) Services PMI for February, which will be published at 15:00 GMT. According to economists, the Services PMI representing the service sector, which accounts for two-third of the US economy is expected to drop to 53.0 from 53.4 in January.

Meanwhile, the Canadian Dollar will be guided by the interest rate decision from the Bank of Canada (BoC), which will be announced on Wednesday. The BoC is expected to hold interest rates at 5% for the fifth time in a row. Market participants will focus on the guidance about when the BoC will start reducing interest rates.

USD/CAD

Overview
Today last price	1.3596
Today Daily Change	0.0020
Today Daily Change %	0.15
Today daily open	1.3576

Trends
Daily SMA20	1.351
Daily SMA50	1.3442
Daily SMA100	1.3538
Daily SMA200	1.3478

Levels
Previous Daily High	1.3584
Previous Daily Low	1.3546
Previous Weekly High	1.3606
Previous Weekly Low	1.3484
Previous Monthly High	1.3606
Previous Monthly Low	1.3366
Daily Fibonacci 38.2%	1.3569
Daily Fibonacci 61.8%	1.356
Daily Pivot Point S1	1.3553
Daily Pivot Point S2	1.353
Daily Pivot Point S3	1.3515
Daily Pivot Point R1	1.3591
Daily Pivot Point R2	1.3607
Daily Pivot Point R3	1.363

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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