USD/CAD stays above 1.2700 with eyes on BOC, US President-elect Biden’s inauguration

  • USD/CAD keeps latest recovery moves after Tuesday’s downside.
  • Canada will not receive any Pfizer vaccine next week, government’s vaccination plan won’t be affected.
  • Risks dwindle after Yellen’s speech, ahead of Biden’s White House entry.
  • BOC is likely to keep interest rates unchanged, Canadian CPI will also be the key to watch.

USD/CAD wavers around 1.2735 during the latest corrective pullback amid Wednesday’s Asian session. The pair dropped the previous day amid broad US dollar weakness before bouncing off 1.2715 as risks turned heavy after US Treasury Secretary Nominee Janet Yellen spoke in the Senate. Also favoring the quote’s recent upside momentum could be the cautious sentiment ahead of the Bank of Canada’s (BOC) monetary policy meeting and US President-elect Joe Biden’s White House entry.

Ex-Fed Chair Yellen’s open back-up to Biden’s stimulus, by citing urgency to battle the pandemic and record low-interest rates, fails to cover her dislike for Trump’s investment proposals and China. The incoming Treasury Secretary also suggested a second stimulus boost in a month but couldn’t please the risk-takers.

Elsewhere, the New York Times came out with the news suggesting that Canada will not receive any vaccine shipments from Pfizer next week, as per an anonymous official, but that should not affect the government’s plan to administer six million doses of the Pfizer and Moderna vaccines by the end of March.

It should be noted that the coronavirus (COVID-19) woes are gradually coming back to the fore even as vaccinations are on the rise. The reason could be traced from Germany’s extended lockdown, fears in Japan and likely shortage of vaccines in New York.

Amid these plays, Wall Street closed in the green while the US 10-year Treasury yields eased to 1.09%.

Looking forward, virus updates and price moves of oil, Canada’s biggest export item, can offer intermediate moves ahead of the Canadian Consumer Price Index (CPI) data for December, expected to remain unchanged at 1.0% YoY. However, more important will be the BOC’s monetary policy and Biden’s inauguration party.

While BOC is likely to justify its latest bearish bias and keep the current monetary policy intact, any causalities in the White House won’t be taken lightly. Ahead of the BOC, TC Securities said, “The Bank of Canada rate decision and December CPI will share the spotlight on Wednesday. Although Governor Macklem has recently mused about an ELB below 0.25%, we do not expect this discussion to materialize into a micro-rate cut.”

Technical analysis

While 21-day SMA guards immediate upside around 1.2750, a downward sloping trend line from November 13, at 1.2781 now, becomes the key hurdle to watch for USD/CAD buyers.

Additional important levels

Today last price 1.2737
Today Daily Change -9 pips
Today Daily Change % -0.07%
Today daily open 1.2746
Daily SMA20 1.2758
Daily SMA50 1.2861
Daily SMA100 1.3032
Daily SMA200 1.3329
Previous Daily High 1.2799
Previous Daily Low 1.2726
Previous Weekly High 1.2836
Previous Weekly Low 1.2625
Previous Monthly High 1.301
Previous Monthly Low 1.2688
Daily Fibonacci 38.2% 1.2771
Daily Fibonacci 61.8% 1.2754
Daily Pivot Point S1 1.2715
Daily Pivot Point S2 1.2684
Daily Pivot Point S3 1.2642
Daily Pivot Point R1 1.2788
Daily Pivot Point R2 1.283
Daily Pivot Point R3 1.2861



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: ECB and US Treasury yields to make it or break it

The EUR/USD pair fell to a fresh 2021 low at 1.1892 this week, ending with a handful of pips above this level. The dollar soared across the board following comments from the head of US Federal Reserve Jerome Powell.


GBP/USD: Dollar bulls taking over

The British Pound was among the best performers against the greenback, surging above the 1.4000 level for the first time this week. Soaring US Treasury yields after Powell’s speech sent the dollar skyrocketing. GBP/USD struggling around 1.3900 and at risk of falling further.


Gold still eyes June 2020 lows at $1670 after weekly closing below $1700

Weekly closing below $1700 keeps the XAU/USD sellers hopeful. A bounce towards 50-SMA on 4H cannot be ruled out in the near-term. RSI stays bearish while gold holds within a potential falling wedge.

Gold News

Ethereum price primed for a swift recovery as the network prepares for a major update in July

Ethereum price aims for a significant recovery towards $2,000. A major upgrade scheduled for July intends to fix the problem with gas fees on Ethereum. ETH miners are not happy with the decision.

Read more

US Dollar Index pushes higher to 92.20 on stellar Payrolls

The march north in the greenback remains unabated and trade in fresh 2021 highs beyond the 92.00 hurdle when tracked by the US Dollar Index (DXY).

US Dollar Index News