- In a subdued, holiday-thinned start to the trading week, USD/CAD has traded in thin ranges just above the 1.2600 level.
- Higher oil prices have prevented the pair from being lifted above its 200 and 50DMAs by the buoyant buck.
- Focus this week will be on Fed Chair Powell’s Thursday speech and on Wednesday Canadian CPI figures.
In a subdued start to the trading week with many market participants still away for Easter holiday celebrations and key market closures in Europe and some Asia Pacific regions, USD/CAD has traded in thin ranges just above the 1.2600 level. The pair has been supported by broad strength in the US dollar amid buoyancy in US yields as traders price in a more aggressive Fed tightening cycle and, at current levels in the 1.2610s, trades a modest 0.1% higher.
A sharp rise in global oil prices as a result of pessimism regarding a potential Russo-Ukraine peace deal as fighting intensifies as well as OPEC supply concerns amid new outages in Libya has prevented the pair from breaking above its 200 and 50-Day Moving Averages at the 1.2623 and 1.2653 levels. For now, these technical levels look likely to prevent the pair from testing last week’s peaks in the 1.2675 area.
A key focus for USD/CAD traders this week will be on whether key trends established on Monday continue through the week; i.e. can oil and the US dollar continue recent upside momentum. Regarding the latter, Fed Chair Jerome Powell will be speaking at this week’s IMF/World Bank meetings on Thursday and is expected to solidify expectations for 50 bps rate hikes at upcoming Fed meetings.
Whilst this does present an upside risk to USD/CAD, Canadian March Consumer Price Inflation figures are due on Wednesday. If they show a 0.9% MoM rise in the headline price index, as expected, this should solidify expectations that the BoC will follow up last week’s 50 bps rate hike (which took rates to 1.0%) at its next meeting in June. The BoC’s relatively hawkish stance should thus be enough to shield the loonie from the buck’s advances, for now.
|Today last price||1.2613|
|Today Daily Change||-0.0002|
|Today Daily Change %||-0.02|
|Today daily open||1.2615|
|Previous Daily High||1.2621|
|Previous Daily Low||1.259|
|Previous Weekly High||1.2676|
|Previous Weekly Low||1.2521|
|Previous Monthly High||1.2901|
|Previous Monthly Low||1.243|
|Daily Fibonacci 38.2%||1.2609|
|Daily Fibonacci 61.8%||1.2602|
|Daily Pivot Point S1||1.2596|
|Daily Pivot Point S2||1.2578|
|Daily Pivot Point S3||1.2565|
|Daily Pivot Point R1||1.2628|
|Daily Pivot Point R2||1.264|
|Daily Pivot Point R3||1.2659|
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.