USD/CAD tackles to hold above 1.3740 ahead of Tuesday’s US inflation data

USD/CAD opens the day at 1.3724 and trades at 1.3738, up by 0.10%.
The intraday price movements are relatively narrow at 1.3751-1.3706.
Market sentiment remains cautious due to the SVG collapse.
Investors await fresh impetus from the US CPI and Retail Sales data.

Daily price movements:

USD/CAD trades at 1.3738, slightly below 1,3740 at the press time, with the intraday price range being 1.3751 to 1.3706. The market sentiment remains cautious as investors await fresh impetus from Tuesday's upcoming US Inflation data at 12:30 GMT. The USD/CAD currency pair's price movements have been relatively narrow, struggling to gain momentum.

Investors' willingness to take risks is low due to the impact of the collapse of the Silicon Valley Bank (SVG) on global stocks. Meanwhile, the yield on 10-year US Treasury bonds has risen to approximately 3.57% as investors anticipate that US inflation data will increase the demand for safe-haven investments.

The Bank of Canada (BoC) has stated that the current monetary policy adequately controls inflation in Canada. BoC Governor Tiff Macklem has decided to maintain the current monetary policy in March to assess its effectiveness.

Nonetheless, unexpected growth in employment figures and an increase in the employment cost index imply that inflation could rise again. Along with maintaining the current monetary policy, BoC Governor Tiff Macklem has indicated the possibility of raising interest rates if inflation unexpectedly rises.

Key economic events:

US February Consumer Price Index (CPI) scheduled for Tuesday at 12:30 GMT and US February Retail Sales on Wednesday at 12:30 GMT are critical data to be closely monitored.

Nonetheless, due to the unfortunate collapse of Silicon Valley Bank (SVB), the markets are now expecting a more accommodating approach from the Federal Reserve (Fed).

Technical view:

According to the daily chart, USD/CAD trades above its daily 20-SMA of 1.3596, indicating a short-term bullish trend. RSI(14) is at 62.250 at the time of press, indicating a buying stance.

The daily pivot point is 1.3745, with daily resistance levels at 1.3814, 1.3896, and 1.3964 and daily support levels at 1.3663, 1.3594, and 1.3512.

USD/CAD

Overview
Today last price	1.3734
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.3731

Trends
Daily SMA20	1.3596
Daily SMA50	1.3483
Daily SMA100	1.3504
Daily SMA200	1.3319

Levels
Previous Daily High	1.3828
Previous Daily Low	1.3677
Previous Weekly High	1.3862
Previous Weekly Low	1.3582
Previous Monthly High	1.3666
Previous Monthly Low	1.3262
Daily Fibonacci 38.2%	1.3735
Daily Fibonacci 61.8%	1.377
Daily Pivot Point S1	1.3663
Daily Pivot Point S2	1.3594
Daily Pivot Point S3	1.3512
Daily Pivot Point R1	1.3814
Daily Pivot Point R2	1.3896
Daily Pivot Point R3	1.3964

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