USD/CAD posts moderate losses above 1.3800, eyes on US UoM data

USD/CAD snaps the four-day winning streak on Friday.
Federal Reserve (Fed) Chair Powell said they are still not sure that rates are high enough to finish the battle with inflation.
Markets anticipate a 90% chance the BoC to maintain the interest rates steady at its December meeting.
Traders will focus on Fed's Logan speech, Michigan Consumer Sentiment Index and UoM 5-year Consumer Inflation Expectation data.

Lallalit Srijandorn FXStreet

The USD/CAD pair posts moderate losses above the 1.3800 psychological support during the Asian trading hours on Friday. A modest intraday loss in the US dollar and the recovery in oil prices cap the upside of the USD/CAD pair. The pair currently trades around 1.3805, down 0.01% on the day

The Federal Reserve (Fed) Chair Jerome Powell offered some hawkish comments on Thursday, which drive the US Dollar (USD) higher broadly. Powell said that they are still not sure that interest rates are high enough to finish the battle with inflation while mentioning that If it becomes appropriate to tighten policy further, they will not hesitate to do it. The markets have priced in 20% odds of more rate hikes in the January meeting and anticipate Fed rate cuts in June 2024.

On the Loonie front, the Bank of Canada (BoC) stated after the rate decision that another rate hike might not be necessary if inflation cools in line with the central bank's expectations. Additionally, the markets anticipate a 90% chance for the BoC to maintain the interest rates steady at its December meeting. Apart from this, the rebound in oil prices might lift the commodity-linked Loonie as the country is the leading oil exporter to the US.

In the absence of top-tier economic data released from the Canadian docket on Friday, the USD/CAD pair remains at the mercy of USD price dynamics. Investors will keep an eye on the Fed's Logan speech ahead of the US data, including the US preliminary Michigan Consumer Sentiment Index and UoM 5-year Consumer Inflation Expectation data. These events could give a clear direction to the USD/CAD pair.

USD/CAD

Overview
Today last price	1.3801
Today Daily Change	-0.0007
Today Daily Change %	-0.05
Today daily open	1.3808

Trends
Daily SMA20	1.3751
Daily SMA50	1.3647
Daily SMA100	1.3493
Daily SMA200	1.35

Levels
Previous Daily High	1.3816
Previous Daily Low	1.3747
Previous Weekly High	1.3899
Previous Weekly Low	1.3654
Previous Monthly High	1.3892
Previous Monthly Low	1.3562
Daily Fibonacci 38.2%	1.379
Daily Fibonacci 61.8%	1.3773
Daily Pivot Point S1	1.3764
Daily Pivot Point S2	1.3721
Daily Pivot Point S3	1.3695
Daily Pivot Point R1	1.3834
Daily Pivot Point R2	1.386
Daily Pivot Point R3	1.3904

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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