USD/CAD improves to near 1.3560 despite higher Crude oil prices, BoC policy decision eyed

USD/CAD gains ground despite higher Crude oil prices.
BoC is expected to maintain its current interest rate at 5.0%.
WTI price appreciates on the OPEC+ decision to extend oil output cuts of 2.2M bpd.
US Dollar consolidates amid improved US Treasury yields.

Akhtar Faruqui FXStreet

USD/CAD retraces recent losses, reaching higher to near 1.3560 during the Asian session on Monday. This retracement occurred despite higher Crude oil prices, which typically support the Canadian Dollar (CAD) due to Canada's status as a major oil exporter. This, in turn, could limit the advances of the USD/CAD pair.

West Texas Intermediate (WTI) oil price edges higher to near $79.50 per barrel on Monday. The increase in Crude oil prices followed the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decision to extend voluntary oil output cuts of 2.2 million barrels per day (bpd) into the second quarter, aligning with market expectations.

Canada's S&P Global Manufacturing Purchasing Managers Index (PMI) experienced a slight improvement, rising to 49.7 from the previous 48.3, although it remained below the 50.0 threshold which indicates contraction in the sector.

Looking ahead, the Bank of Canada (BoC) is scheduled to announce its latest interest rate decision next Wednesday. Market expectations suggest that the central bank will maintain its current interest rate at 5.0%.

The US Dollar Index (DXY) hovers around 103.80, as it seeks direction amidst improved US Treasury yields. However, the US Dollar (USD) faced downward pressure due to the contraction observed in the United States manufacturing sector in February.

The US ISM Manufacturing PMI for February dropped to 47.8 from 49.1, significantly missing the market expectation of 49.5. Additionally, the US Michigan Consumer Sentiment Index declined to 76.9 in February, falling below the market expectation of remaining unchanged at 79.6.

Despite these concerning data points, Federal Reserve (Fed) officials have maintained a cautious stance and have not signaled any immediate interest rate cuts. This stance has provided some support for the US Dollar.

Investors are closely monitoring upcoming economic data releases, including the ISM Services PMI data, ADP Employment Change, and Nonfarm Payrolls for February, to gauge the overall health of the US economy and potential future monetary policy decisions by the US Federal Reserve.

USD/CAD

Overview
Today last price	1.356
Today Daily Change	0.0002
Today Daily Change %	0.01
Today daily open	1.3558

Trends
Daily SMA20	1.3509
Daily SMA50	1.3435
Daily SMA100	1.3539
Daily SMA200	1.3478

Levels
Previous Daily High	1.3602
Previous Daily Low	1.3545
Previous Weekly High	1.3606
Previous Weekly Low	1.3484
Previous Monthly High	1.3606
Previous Monthly Low	1.3366
Daily Fibonacci 38.2%	1.3567
Daily Fibonacci 61.8%	1.358
Daily Pivot Point S1	1.3535
Daily Pivot Point S2	1.3512
Daily Pivot Point S3	1.3478
Daily Pivot Point R1	1.3592
Daily Pivot Point R2	1.3625
Daily Pivot Point R3	1.3649

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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