USD/CAD holds positive ground above the 1.3500 mark, focus on FOMC Minutes


  • USD/CAD trades in positive territory for the fourth consecutive day around 1.3526. 
  • The Canadian CPI came in weaker-than-expected, climbing 2.9% YoY in January from a 3.4% rise in December.
  • The hotter-than-expected US inflation data last week lowered the hope for rate cuts from the Fed.
  • The FOMC Meeting Minutes will be in the spotlight on Wednesday. 

The USD/CAD pair gains ground above the 1.3500 mark during the early Asian trading hours on Wednesday. A weaker-than-expected Canadian inflation data weighs on the Canadian Dollar (CAD) and acts as a tailwind for USD/CAD. The attention is shifted to the FOMC Meeting Minutes on Wednesday. The pair currently trades near 1.3526, up 0.03% on the day. 

Statistics Canada revealed on Tuesday that the nation’s Consumer Price Index (CPI) climbed 2.9% YoY in January from a 3.4% rise in December, below the market consensus of 3.3%. The inflation data eased into the central bank’s control range for the first time since June, and it might convince the Bank of Canada (BoC) to start considering rate cuts in the coming months.

Meanwhile, the oil prices face some profit-taking and retraces from the three-month highs, which might exert some selling pressure on the commodity-linked Loonie as Canada is the largest oil exporter to the United States (US). 

On the other hand, the stronger-than-expected US Consumer Prices Index and Producer Price Index (PPI) last week trimmed hope for a rate cut from the Federal Reserve (Fed) in March. Traders have priced in a 60% odds of no rate cut in the May meeting, while pricing in an 80% chance of at least a 25 basis point (bps) cut in June, according to the CME FedWatch Tool.  

Market players will closely watch the FOMC Meeting Minutes, due later on Wednesday. The Canadian Retail Sales for December will be due on Thursday, which is expected to improve to 0.8% MoM versus the previous reading of a 0.2% decline. 

 

USD/CAD

Overview
Today last price 1.3521
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 1.3522
 
Trends
Daily SMA20 1.3474
Daily SMA50 1.3409
Daily SMA100 1.3549
Daily SMA200 1.3478
 
Levels
Previous Daily High 1.353
Previous Daily Low 1.3472
Previous Weekly High 1.3586
Previous Weekly Low 1.343
Previous Monthly High 1.3542
Previous Monthly Low 1.3229
Daily Fibonacci 38.2% 1.3508
Daily Fibonacci 61.8% 1.3494
Daily Pivot Point S1 1.3486
Daily Pivot Point S2 1.345
Daily Pivot Point S3 1.3429
Daily Pivot Point R1 1.3544
Daily Pivot Point R2 1.3566
Daily Pivot Point R3 1.3601

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers from two-year lows, stays below 1.0450

EUR/USD recovers from two-year lows, stays below 1.0450

EUR/USD recovers modestly and trades above 1.0400 after setting a two-year low below 1.0350 following the disappointing PMI data from Germany and the Eurozone on Friday. Market focus shifts to November PMI data releases from the US.

EUR/USD News
GBP/USD falls to six-month lows below 1.2550, eyes on US PMI

GBP/USD falls to six-month lows below 1.2550, eyes on US PMI

GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2550 on Friday. Disappointing PMI data from the UK weigh on Pound Sterling as investors await US PMI data releases.

GBP/USD News
Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark

Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark

Gold price hits a fresh two-week top during the first half of the European session on Friday, with bulls now looking to build on the momentum further beyond the $2,700 mark. This marks the fifth successive day of a positive move and is fueled by the global flight to safety amid persistent geopolitical tensions stemming from the intensifying Russia-Ukraine war.

Gold News
S&P Global PMIs set to signal US economy continued to expand in November

S&P Global PMIs set to signal US economy continued to expand in November

The S&P Global preliminary PMIs for November are likely to show little variation from the October final readings. Markets are undecided on whether the Federal Reserve will lower the policy rate again in December.

Read more
A new horizon: The economic outlook in a new leadership and policy era

A new horizon: The economic outlook in a new leadership and policy era

The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures