USD/CAD juggles around 1.3500 as investors await US FOMC minutes

USD/CAD is oscillating in a narrow range around 1.3500 ahead of FOMC minutes.
Republicans are not agreeing on levying extra taxes on the Wealthy community or supporting higher spending initiatives.
The oil price has printed a fresh three-week high around $74.00 as global central banks are reaching the terminal rate.

Sagar Dua FXStreet

The USD/CAD pair is demonstrating topsy-turvy moves near the psychological figure of 1.3500 in the early Asian session. The Loonie asset is expected to remain sideways ahead of the release of the Federal Open Market Committee (FOMC) minutes for May’s monetary policy meeting.

S&P500 futures have added some gains in early Tokyo after a bearish Tuesday. The overall market mood is still risk-off amid deepening issues associated with US debt-ceiling case. US House Speaker Kevin McCarthy told House Republicans during a closed GOP meeting on Tuesday that “I need you all to hang with me on the debt limit, we are nowhere near a deal yet,”

Uncertainty about US borrowing cap issue soars after US President Joe Biden called partisan terms proposed by Speak McCarthy ‘extreme’. The latter is not agreed on levying extra taxes on the Wealthy community nor is he supporting higher spending initiatives.

The US Dollar Index (DXY) is showing signs of volatility contraction after reaching near the previous week’s high above 103.62. More gains are in the pipeline ahead of the FOMC minutes, which will provide a detailed explanation behind the 25 basis points (bps) interest rate hike by the Federal Reserve (Fed). Also, it will report current economic prospects and would deliver guidance on interest rates.

Meanwhile, the oil price has printed a fresh three-week high around $74.00 as investors seem confident that the US economy will not default and would find a bipartisan deal with Republicans. Also, other central banks are reaching the terminal rate, which is easing fears of a further slowdown.

It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices will support the Canadian Dollar.

USD/CAD

Overview
Today last price	1.3502
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.3505

Trends
Daily SMA20	1.351
Daily SMA50	1.3536
Daily SMA100	1.3509
Daily SMA200	1.348

Levels
Previous Daily High	1.3519
Previous Daily Low	1.3485
Previous Weekly High	1.3568
Previous Weekly Low	1.3404
Previous Monthly High	1.3668
Previous Monthly Low	1.3301
Daily Fibonacci 38.2%	1.3506
Daily Fibonacci 61.8%	1.3498
Daily Pivot Point S1	1.3487
Daily Pivot Point S2	1.3469
Daily Pivot Point S3	1.3453
Daily Pivot Point R1	1.3521
Daily Pivot Point R2	1.3537
Daily Pivot Point R3	1.3555

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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