USD/CAD jumps to multi-week highs above 1.2230 on Fed's dot plot

USD/CAD rose sharply on renewed USD strength on Wednesday.
Fed's dot plot showed a hawkish shift in the rate outlook.
US Dollar Index tests 91.00 ahead of FOMC Chairman Powell's presser.

Eren Sengezer FXStreet

The USD/CAD pair rose sharply during the American trading hours on Wednesday as the FOMC's updated Summary of Economic Projections provided a boost to the greenback. As of writing, the pair was trading at its highest level since early May at 1.2237, rising 0.5% on a daily basis.

Fed's policy outlook lifts DXY

According to the Fed's dot plot, the number of FOMC policymakers who expect a first rate hike in 2022 rose to seven from four in March. More importantly, 13 policymakers are now expecting a rate hike in 2023, compared to only seven in March.

Meanwhile, the Fed left the benchmark interest rate, the target range for federal funds, unchanged at 0%-0.25% as widely expected.

With the initial market reaction, the USD started to gather strength against its major rivals and the US Dollar Index (DXY) was last seen testing 91.00, rising 0.5% on the day. Focus now shifts to FOMC Chairman Jerome Powell's press conference at 1830 GMT.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2169
Today Daily Change	-0.0014
Today Daily Change %	-0.11
Today daily open	1.2183

Trends
Daily SMA20	1.2094
Daily SMA50	1.2249
Daily SMA100	1.2442
Daily SMA200	1.2725

Levels
Previous Daily High	1.2204
Previous Daily Low	1.213
Previous Weekly High	1.2178
Previous Weekly Low	1.2057
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2176
Daily Fibonacci 61.8%	1.2158
Daily Pivot Point S1	1.2141
Daily Pivot Point S2	1.2098
Daily Pivot Point S3	1.2066
Daily Pivot Point R1	1.2215
Daily Pivot Point R2	1.2247
Daily Pivot Point R3	1.229

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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