The greenback is losing some upside momentum vs. its neighbour on Wednesday, motivating USD/CAD to return to sub-1.3100 levels ahead of key data in the US docket.
USD/CAD gains capped above 1.3100
Spot is trading with marginal losses today despite the persistent bid tone around the greenback following yesterday’s testimony by Chair Yellen and supportive Fedspeak.
Market bets for a rate hike in March has gathered renewed traction after Chief Yellen added to the view of gradual and further rate hikes this year. In the same direction, Yellen noted it would be ‘unwise’ to wait too long to tighten further the monetary policy.
Furthermore, Richmond Fed J.Lacker suggested the Fed may need to hike more than three times this year, advocating for a rate hike at the March meeting.
Data wise today, the second testimony by Yellen before the House Financial Services Committee will be in centre stage, seconded by US inflation figures gauged by the CPI, Industrial Production, TIC Flows, the Empire State index, January’s Retail Sales, the NAHB index and the weekly report on crude oil inventories by the EIA.
In Canada, Manufacturing Shipments are only due.
USD/CAD significant levels
As of writing the pair is losing 0.05% at 1.3068 facing the next support at 1.3046 (low Feb.13) seconded by 1.3016 (low Jan.17) and then 1.2967 (low Jan.31). On the other hand, a surpass of 1.3109 (high Feb.14) would aim for 1.3122 (20-day sma) and finally 1.3215 (high Feb.7).
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 securities. 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 Forex 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.