USD/CAD oscillates in a narrow band above 1.3500, eyes on US, Canadian GDP data


  • USD/CAD consolidates around 1.3507 in Tuesday’s early Asian session. 
  • Several Fed officials are worried about the risks of moving too quickly on rate cuts.
  • The Canadian inflation data eased more than expected in January, prompting speculation of an early interest rate cut from the BoC.

The USD/CAD pair oscillates in a narrow trading band of 1.3495–1.3515 during the early Asian session on Tuesday. Investors await the fresh catalysts from the incoming economic data this week. The US and Canadian Gross Domestic Product (GDP) will be released on Wednesday and Thursday, respectively. The pair currently trades around 1.3507, adding 0.01% on the day. 

The Federal Reserve (Fed) Chairman Jerome Powell said last month that the central bank wants to gain more confidence that inflation is on a sustainable path down to the 2% target before lowering the interest rate. Additionally, the FOMC minutes indicated that several policymakers were worried about the risks of moving too quickly on rate cuts. The dovish remarks from Fed officials and a data-driven approach weigh on the US Dollar (USD) and act as a headwind for the USD/CAD pair. 

On the Loonie front, the Canadian CPI inflation data eased more than expected to 2.9% in January. The report triggered speculation of an early interest rate cut from the Bank of Canada (BoC). The BoC's next monetary policy meeting is scheduled for March 6, and investors anticipate the rate will stay on hold at 5.0%. However, the markets have priced in 58% odds of a rate cut in the April meeting, a rise from a 33% chance before the CPI data were published.

On Tuesday, the US Durable Goods Orders, Consumer Confidence, and Richmond Fed Manufacturing Index are due. Also, the Fed’s Michael Barr is set to speak later in the day. The US and Canadian GDP for Q4 will be the highlights this week. This event could trigger volatility in the market and give a clear direction to the USD/CAD pair. 

 

USD/CAD

Overview
Today last price 1.3509
Today Daily Change 0.0003
Today Daily Change % 0.02
Today daily open 1.3506
 
Trends
Daily SMA20 1.3481
Daily SMA50 1.3416
Daily SMA100 1.3542
Daily SMA200 1.3478
 
Levels
Previous Daily High 1.3529
Previous Daily Low 1.3492
Previous Weekly High 1.3536
Previous Weekly Low 1.3441
Previous Monthly High 1.3542
Previous Monthly Low 1.3229
Daily Fibonacci 38.2% 1.3506
Daily Fibonacci 61.8% 1.3515
Daily Pivot Point S1 1.3489
Daily Pivot Point S2 1.3472
Daily Pivot Point S3 1.3452
Daily Pivot Point R1 1.3526
Daily Pivot Point R2 1.3546
Daily Pivot Point R3 1.3564

 





 

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 clings to daily gains above 1.0650

EUR/USD clings to daily gains above 1.0650

EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.

EUR/USD News

GBP/USD recovers toward 1.2450 after UK Retail Sales data

GBP/USD recovers toward 1.2450 after UK Retail Sales data

GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.

GBP/USD News

Gold holds steady at around $2,380 following earlier spike

Gold holds steady at around $2,380 following earlier spike

Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.

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

Week ahead – US GDP and BoJ decision on top of next week’s agenda

Week ahead – US GDP and BoJ decision on top of next week’s agenda

US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.

Read more

Forex MAJORS

Cryptocurrencies

Signatures