USD/CAD remains sideways near 1.3750 as investors shift focus to US Retail Sales data


  • USD/CAD consolidates near 1.3750 with a focus on the US Retail Sales report for May.
  • Investors see the Fed reducing interest rates twice this year against one forecasted by policymakers.
  • The BoC may extend its policy-tightening spell in July.

The USD/CAD pair is slightly up in Monday’s London session but has been trading in a range of 1.3710-1.3780 from Thursday. The Loonie asset struggles to find direction as investors shift focus to the monthly United States (US) Retail Sales data for May, which will be published on Tuesday.

Investors will pay close attention to the US Retail Sales data for fresh cues on the Federal Reserve’s (Fed) policy outlook. The Retail Sales data is a close measure of consumer spending, which provides cues on the inflation outlook. This would give more clarity on the divergence between the Fed’s expectations of one rate cut this year and the two that financial markets are speculating about. Retail Sales are estimated to have expanded by 0.3% after remaining flat in April.

According to the CME FedWatch tool, the possibility of two rate cuts this year is very high and policymakers will start reducing from the September meeting.

Meanwhile, Fed officials continue to argue in favor of cutting interest rates only once this year as they want to see inflation declining for months to gain confidence in lowering interest rates. Fed policymakers remain concerned over reacceleration in price pressures due to premature rate cuts.

On the Canadian Dollar front, investors expect that the Bank of Canada (BoC) will deliver subsequent rate cuts in the July meeting. The BoC became the first among central banks of G-7 nations to start unwinding its restrictive monetary policy framework since the pandemic.

(This story was corrected on June 17 at 12:30 GMT  to say that the USD/CAD has been trading in a range of 1.3710-1.3780 from Thursday, not in a range of 1.710-1.3780)

USD/CAD

Overview
Today last price 1.3742
Today Daily Change 0.0009
Today Daily Change % 0.07
Today daily open 1.3733
 
Trends
Daily SMA20 1.3691
Daily SMA50 1.3691
Daily SMA100 1.3604
Daily SMA200 1.3581
 
Levels
Previous Daily High 1.3779
Previous Daily Low 1.3728
Previous Weekly High 1.3792
Previous Weekly Low 1.368
Previous Monthly High 1.3783
Previous Monthly Low 1.359
Daily Fibonacci 38.2% 1.3747
Daily Fibonacci 61.8% 1.376
Daily Pivot Point S1 1.3714
Daily Pivot Point S2 1.3695
Daily Pivot Point S3 1.3662
Daily Pivot Point R1 1.3766
Daily Pivot Point R2 1.3798
Daily Pivot Point R3 1.3817

 

 

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

Australian Dollar holds gains ahead of Michigan Consumer Sentiment Index

Australian Dollar holds gains ahead of Michigan Consumer Sentiment Index

The Australian Dollar recovers its losses as soft US inflation data raises expectations of Fed reducing rates. China's Trade Balance for June came in at $99.05 billion, widening from the previous figure of $82.62 billion. Fed’s Goolsbee stated that the US economy appears to be on track to achieve 2% target inflation.

AUD/USD News

EUR/USD: The door appears open to extra gains in the near term

EUR/USD: The door appears open to extra gains in the near term

Another auspicious week saw EUR/USD trade with decent gains and extend its positive streak for the third consecutive week, including a visit to the key 1.0900 region for the first time since early June.

EUR/USD News

Gold turns bullish as US data bolster case for Fed rate cut in September

Gold turns bullish as US data bolster case for Fed rate cut in September

Gold gathered bullish momentum and climbed above $2,400 on broad-based USD weakness. Investors expect the Fed to reduce the policy rate in September after soft inflation data. XAU/USD could target a new all-time high once $2,400 is confirmed as support.

Gold News

Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu traders are anticipating the roll-out of futures contracts, products like Exchange Traded Funds that could boost the asset’s utility. An IBC report shows the contract is expected to be listed post Monday, July 15.

Read more

Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation Premium

Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation

Fist in the air and on with the fight - that has been the historic picture that former President Donald Trump shortly after he survived an assassination attempt on his life. Trump was injured in his ear but seems to have come out stronger politically from the shocking political violence. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures