USD/CAD treads water near 1.3600 amid higher Crude oil prices

USD/CAD attempts to continue its winning streak on Monday.
Fed member Bostic forecasted only one interest rate cut instead of his earlier projection of two rate cuts in 2024.
The higher WTI price might have provided support for the Canadian Dollar.

Akhtar Faruqui FXStreet

USD/CAD maintains its position in positive territory after paring back some gains on Monday. The pair trades higher around 1.3600 during the Asian trading session, following hawkish remarks from Federal Reserve Bank of Atlanta President Raphael Bostic on Friday. Bostic adjusted his earlier projection of two interest rate cuts this year, now forecasting only one, citing persistent inflation and stronger-than-expected economic indicators.

Moreover, the Canadian Dollar (CAD) faced downward pressure as the Bank of Canada (BoC) hinted at potential rate cuts in 2024 in its latest meeting minutes. Deputy Governor Toni Gravelle reaffirmed the central bank's intention for quantitative tightening to conclude by 2025, highlighting its sustainability amidst gradual interest rate reductions.

The CAD receives support from higher Crude oil prices, which in turn limits the losses of the USD/CAD pair. Additionally, better-than-anticipated Canadian Retail Sales data might have contributed to bolstering the Canadian Dollar.

The US Dollar Index (DXY) declines to near 104.40 as the 2-year and 10-year yields on US Treasury bonds hold at 4.60% and 4.21%, respectively, at the time of reporting. Despite the uptick in US Treasury yields, the US Dollar (USD) fails to find support.

Federal Reserve Chair Jerome Powell mentioned during a press conference, that an unexpected increase in unemployment could prompt the central bank to consider reducing interest rates. Powell also reassured markets that the Federal Reserve would not hastily react to consecutive months of heightened inflation figures.

Market participants will likely monitor the release of Gross Domestic Product (GDP) data for the fourth quarter of 2023 from the United States (US). Additionally, attention will be on Canadian GDP data for January, scheduled for release on Thursday.

USD/CAD

Overview
Today last price	1.36
Today Daily Change	-0.0005
Today Daily Change %	-0.04
Today daily open	1.3605

Trends
Daily SMA20	1.3532
Daily SMA50	1.3498
Daily SMA100	1.3505
Daily SMA200	1.3487

Levels
Previous Daily High	1.3614
Previous Daily Low	1.352
Previous Weekly High	1.3614
Previous Weekly Low	1.3456
Previous Monthly High	1.3606
Previous Monthly Low	1.3366
Daily Fibonacci 38.2%	1.3578
Daily Fibonacci 61.8%	1.3556
Daily Pivot Point S1	1.3545
Daily Pivot Point S2	1.3485
Daily Pivot Point S3	1.345
Daily Pivot Point R1	1.364
Daily Pivot Point R2	1.3675
Daily Pivot Point R3	1.3735

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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