USDCAD is nearing a bi-monthly top, hovering around the mid-1.3700s, before of the Federal Reserve’s Powell statement.
Key Points and Considerations
USDCAD rises for the three day in a row, approaching a tw2-week top.
Dropping crude prices weigh on the CAD as the US dollar stays strong.
The US D benefits from aggressive Fed predictions, rising US bond rates, with a milder risk tenor.
Investors are looking at certain stimulus from US macroeconomic information prior to Fed’s Powell’s address.
The USDCAD duo gets little upward impetus for the three days in succession on Thursday. But retains its buy mood, trading at a 2-week top in the early hours of the Eurozone period. The spot market prices are now trading at 1.3730 mark. Gaining 0.10 percent during the day, and are strongly backed by a number of reasons.
More soft Canadian consumer inflation figures issued on Tuesday prompted traders to reduce their predictions for a further rise by the BOC. Aside from that, modest daily offering near crude oil prices is undermining the commodity-specific CAD. This, together alongside the stronger US dollar, is considered to act as a benefit for the USDCAD set. Bolstering expectations for additional short-term appreciation.
Furthermore, the US dollar remains to benefit from widespread agreement that the Fed will maintain rates of interest high over an extended period of time. The prediction predicts a prolonged selling-off in the U.S. fixed-income markets. Bringing the yield on the leading a ten- sovereign bond to a new sixteen-year top and nearer to the crucial 5 percent level. That, together with a pervasive risk-off atmosphere, keeps the refuge of the USD in demand.
Technical Perspective
The pair’s price is nearing an important resistance area spanning from 1.3687 – 1.3700. In which it has found obstacles in recent times. Reaching over this stage allows you to enter 1.3736 – to 43 band.
Support and Resistance Levels
S3 1.30915 S2 1.3377 S1 1.3377 R1 1.37849 R2 1.37849 R3 1.37849 – Current Trend: Bullish
