USD/CAD jumps toward 1.3740 amid a stronger US Dollar

  • US Dollar gains momentum as US yields rise ahead of FOMC decision.  
  • Canada: CPI rose 0.4% in February, core up 0.5%.
  • USD/CAD support at 1.3650 remains in place.

The USD/CAD bottomed at 1.3643 following the release of Canadian inflation, the lowest since March 7 and then rebounded sharply amid a stronger US Dollar, approaching 1.3740.

The move to the upside occurred amid rising US yields that boosted the Greenback. The US 10-year yield approached 3.60% and the 2-year is back above 4.00%.

The Federal Reserve started on Tuesday it's two-day meeting. On Wednesday, the US central bank is expected to announce a 25 bps rate hike to 4.75% - 5.00%. Attention is set on how the Fed assess current development regarding the banking sector. Ahead of the decision, the US Dollar is posting mixed results.

Canada's inflation keeps slowing

Data released on Tuesday showed the Consumer Price Index dropped to the lowest level in 13 months from 5.9% to 5.2%, below the 5.4% of market consensus; the core rate fell from 5% to 4.7%. The Loonie rose marginally after the report.

Despite falling versus the US Dollar on Tuesday, CAD is up for the second day in a row versus AUD and NZD.

The USD/CAD peaked during the American session at 1.3736 and it is hovering around 1.3730. It rose almost a hundred pips from the daily low.

The pair was rejected from under the key support area of 1.3350. If the Loonie consolidates below, more losses seem likely. On the upside, USD/CAD is testing a downtrend line, and above 1.3740, the upside could extend further.

USD/CAD 4-daily chart



Today last price 1.3729
Today Daily Change 0.0065
Today Daily Change % 0.48
Today daily open 1.3664
Daily SMA20 1.3669
Daily SMA50 1.3503
Daily SMA100 1.351
Daily SMA200 1.3344
Previous Daily High 1.3747
Previous Daily Low 1.3652
Previous Weekly High 1.3828
Previous Weekly Low 1.3652
Previous Monthly High 1.3666
Previous Monthly Low 1.3262
Daily Fibonacci 38.2% 1.3688
Daily Fibonacci 61.8% 1.3711
Daily Pivot Point S1 1.3628
Daily Pivot Point S2 1.3592
Daily Pivot Point S3 1.3533
Daily Pivot Point R1 1.3724
Daily Pivot Point R2 1.3783
Daily Pivot Point R3 1.3819



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

EUR/USD holds steady near 1.0650 amid risk reset

EUR/USD holds steady near 1.0650 amid risk reset

EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets. 


GBP/USD recovers toward 1.2450 after UK Retail Sales data

GBP/USD recovers toward 1.2450 after UK Retail Sales data

GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran. 


Gold price defends gains below $2,400 as geopolitical risks linger

Gold price defends gains below $2,400 as geopolitical risks linger

Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.

Gold News

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in

Bitcoin price shows no signs of directional bias while it holds above  $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research. 

Read more

Geopolitics once again take centre stage, as UK Retail Sales wither

Geopolitics once again take centre stage, as UK Retail Sales wither

Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.

Read more