USD/CAD tumbles to near 1.3800 as investors see Fed rates peak for now


  • USD/CAD falls sharply to near 1.3800 as the US Dollar tumbles amid steady Fed policy.
  • The USD Index drops to near 106.16 as investors see the Fed done with hiking interest rates.
  • Investors await the US and Canadian Employment data for further guidance.

The USD/CAD pair falls vertically after a short-lived pullback to near 1.3850 in the European session. The Loonie asset faces an intense sell-off as the US Dollar extends downside on expectations that the Federal Reserve (Fed) is done with hiking interest rates for now.

S&P500 futures generated significant gains in the London session, portraying a decent improvement in the risk appetite of the market participants. US equities were heavily bought on Wednesday as the Fed kept interest rates unchanged in the range of 5.25-5.50%. Fed Chair Jerome Powell kept expectations of further policy-tightening alive as the US economy is resilient due to robust consumer spending and tight labor market conditions.

The US Dollar Index (DXY) has extended its downside to near 106.16 after a gap-down opening, weighed down by steady Fed policy and surprisingly lower ISM Manufacturing PMI for October. The US ISM reported that factory activities fell to 46.7 against expectations and the former release of 49.0. Contrary, the S&P Global survey of private factories showed that the Manufacturing PMI met the 50.0 threshold in October.

Meanwhile, investors await the US Nonfarm Payrolls (NFP) data, which will be published on Friday. As per expectations, US employers hired 180K job seekers in October.

On the Canadian Dollar front, the Employment data for October will be keenly watched, which will be released on Friday. The Unemployment Rate is seen rising to 5.6% while 22.5K new labor joining are expected.

USD/CAD

Overview
Today last price 1.3822
Today Daily Change -0.0034
Today Daily Change % -0.25
Today daily open 1.3856
 
Trends
Daily SMA20 1.3719
Daily SMA50 1.3626
Daily SMA100 1.346
Daily SMA200 1.3487
 
Levels
Previous Daily High 1.3899
Previous Daily Low 1.3841
Previous Weekly High 1.3881
Previous Weekly Low 1.3661
Previous Monthly High 1.3892
Previous Monthly Low 1.3562
Daily Fibonacci 38.2% 1.3863
Daily Fibonacci 61.8% 1.3877
Daily Pivot Point S1 1.3832
Daily Pivot Point S2 1.3808
Daily Pivot Point S3 1.3774
Daily Pivot Point R1 1.389
Daily Pivot Point R2 1.3924
Daily Pivot Point R3 1.3948

 

 

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