• USD/CAD finds support at the 1.3600 psychological level and rebounds to 1.3615 in Thursday’s early European session. 
  • The recent softer US inflation and weaker Retail Sales have triggered speculation that Fed may cut rates this year.
  • Canadian Manufacturing Sales data for March fell 2.1% MoM in March from a 0.9% rise in February, worse than expected.

The USD/CAD pair recovers some lost ground near 1.3615 on Thursday during the early European trading hours. The modest rebound of US Dollar (USD) provides some support for the pair. Later on Thursday, investors will keep an eye on US Building Permits, Housing Starts, the weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, and Industrial Production. 

Federal Reserve Bank of Minneapolis President Neel Kashkari said on Wednesday that the central bank needs to monitor the economy closely to see if current policy rates are restrictive enough. Earlier this week, Fed Chair Jerome Powell noted that US inflation might prove to be more persistent than expected, keeping the Fed holding rate higher for longer to achieve the central bank’s 2% target. However, the recent softer US inflation data on Wednesday has triggered speculation that the Fed may cut interest rates this year. This, in turn, boosts the Greenback broadly. 

The US Consumer Price Index (CPI) rose by 3.4% YoY in April, compared to an increase of 3.5% in the previous reading. The core CPI inflation, which excludes volatile items like food and energy, climbed by 3.6% YoY in April, compared to the previous reading of 3.8%. Both figures were in line with the consensus. The monthly headline and core CPI inflation eased to 0.3% MoM in April from 0.4% in March. Additionally, US Retail Sales arrived at 0% MoM in April from a 0.6% rise in March, worse than the forecast of 0.4%.  

On the CAD’s front,  the Canadian Manufacturing Sales data for March came in worse than expected, falling 2.1% MoM from a 0.9% rise in February, Statistics Canada revealed on Wednesday. The downbeat figure exerted some pressure on the Loonie. Nonetheless, the rise in oil prices might cap the downside of the commodity-linked Canadian Dollar (CAD), as Canada is the largest oil exporter to the United States.

USD/CAD

Overview
Today last price 1.362
Today Daily Change 0.0018
Today Daily Change % 0.13
Today daily open 1.3602
 
Trends
Daily SMA20 1.3692
Daily SMA50 1.3627
Daily SMA100 1.3541
Daily SMA200 1.3567
 
Levels
Previous Daily High 1.3661
Previous Daily Low 1.3591
Previous Weekly High 1.3763
Previous Weekly Low 1.3618
Previous Monthly High 1.3846
Previous Monthly Low 1.3478
Daily Fibonacci 38.2% 1.3618
Daily Fibonacci 61.8% 1.3634
Daily Pivot Point S1 1.3575
Daily Pivot Point S2 1.3547
Daily Pivot Point S3 1.3504
Daily Pivot Point R1 1.3645
Daily Pivot Point R2 1.3688
Daily Pivot Point R3 1.3716

 

 

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