Mon. May 20th, 2024

USD/CAD REMAINS SUPPORTED ABOVE 1.3640 AHEAD OF FED’S POLICY ANNOUNCEMENT29 April 2024

CANADIAN DOLLAR USD/CAD REMAINS VULNERABLE AFTER STRONG US RETAIL SALESCANADIAN DOLLAR USD/CAD REMAINS VULNERABLE AFTER STRONG US RETAIL SALES

The USD/CAD pair holds auction above the immediate support of 1.3460 in Monday’s early American session.

  • USD/CAD trades above 1.3640 as the US Dollar rebounds ahead of the Fed’s policy decision.
  • The Fed is expected to emphasize keeping interest rates restrictive for a longer period.
  • The Canadian economy is forecasted to have expanded by 0.3% in February.

The USD/CAD pair holds auction above the immediate support of 1.3460 in Monday’s early American session. The Loonie asset finds support as the US Dollar Index (DXY) rebounds after discovering buying interest near the previous week’s low of around 105.46.

The USD Index finds support as investors shift focus to the Federal Reserve’s (Fed) monetary policy decision, which will be announced on Wednesday. Financial market participants expect that the Fed will hold interest rates steady in the range of 5.25%-5.50% for the sixth time in a row.

As interest rates are expected to remain steady, investors will focus on the interest rate outlook. The Fed is expected to reiterate the need to maintain the current interest rate framework as it is for a longer period. The recent batch of consumer inflation showed that price pressures are stubbornly higher than expectations. The Fed would consider reducing interest rates only after policymakers get evidence that inflation will sustainably return to the desired rate of 2%.

Meanwhile, the market sentiment is bullish as investors have shrugged off risks of further escalation in Middle East tensions. The S&P 500 has opened on a bullish note. 10-year US Treasury yields have dropped to 4.64%.

On the Canadian Dollar front, investors await the monthly Gross Domestic Product (GDP) data for February, which will be published on Tuesday. Economists expect that the Canadian economy expanded by half the pace of 0.6% recorded in January. A slowdown in GDP growth will allow the Bank of Canada (BoC) to pivot to interest rate cuts sooner.

USD/CAD

Overview
Today last price1.3664
Today Daily Change-0.0008
Today Daily Change %-0.06
Today daily open1.3672
Trends
Daily SMA201.3669
Daily SMA501.3587
Daily SMA1001.35
Daily SMA2001.3541
Levels
Previous Daily High1.3696
Previous Daily Low1.3635
Previous Weekly High1.3753
Previous Weekly Low1.3635
Previous Monthly High1.3614
Previous Monthly Low1.342
Daily Fibonacci 38.2%1.3673
Daily Fibonacci 61.8%1.3658
Daily Pivot Point S11.3639
Daily Pivot Point S21.3607
Daily Pivot Point S31.3579
Daily Pivot Point R11.37
Daily Pivot Point R21.3728
Daily Pivot Point R31.376

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