The USDCAD pairing fell to about 1.3450 mark in the London trade on the fourth. While the forecast for risk prone securities has improved. The CAD currency is weakening as the U.S. Currency experiences a sharp selling. In spite of the US Fed’s reducing expectations of rate reduction ahead the June rate-setting summit.
Key Highlights
USDCAD falls to 1.3450 after the appetite for risk rises, increasing the attraction of risky-sensitive currencies.
The US greenback misses to benefit from aggressive FOMC findings.
Traders are waiting for more information on the U.S interim S&P Global PMI & Canada’s sales at retail figures.
The US dollar and Fundamentals
The DXY, has retreated to its lowest level in two weeks of 103.70, while a ten- US bond yields have fallen to 4.31 percent.
The dollar’s value did not rebound despite the fact that the FOMC conclusions for the Jan decision gathering. Which were issued on Wednesday afternoon, suggested that regulators have no appetite in lowering rates too fast. Many Federal Reserve members remain dubious about whether inflation will fall back to 2 percent on a sustained basis.
U.S dollar – Daily chart. Source: TradingView
At this point, markets are awaiting the initial S&P Global PMI figures for the month of Feb. That is set to be released at 14:45 GMT. The Manufacturers PMI has been projected to drop to 50.5 versus 50.7 in Jan. The services sector’s PMI, that reflects the services industry. That makes up for 2/3rd of the US economy, is predicted to be 52.0, down from the previous figure of 52.5 stated.
At the CAD face, traders anticipate December’s Retail Sales info, that will be released at 13:30 GMT today. Traders expect December sales at retail to increase by 0.8 percent following falling 0.2 percent in Nov. In a comparable time, sales to retailers without Automobiles are expected to climb by 0.7 percent, compared to a 0.5 percent fall. An increase in sales to retailers could put the BOC reduction in interest rates on hold.
Technical Indicators & Signals (Daily)
| Name | Value | Action |
| RSI(14) | 48.338 | Neutral |
| sSTOCH(9,6) | 40.381 | Sell |
| STOCHRSI(14) | 0.000 | Oversold |
| MACD(12,26) | 0.002 | Buy |
| ADX(14) | 23.137 | Neutral |
| Williams %R | -76.857 | Sell |
| Name | Value | Action |
| CCI(14) | -70.0219 | Sell |
| ATR(14) | 0.0064 | Less Volatility |
| Highs/Lows(14) | -0.0007 | Sell |
| Ultimate Oscillator | 40.145 | Sell |
| ROC | -0.052 | Sell |
| Bull/Bear Power(13) | -0.0021 | Sell |
Technical Analysis
USDCAD weakened after oil prices rose before of the EIA release. Several commodity specific FX assets are fluctuating within increases and decreases throughout current trading period.
Source: TradingView – USDCAD daily charting
The closest supporting mark for USDCAD is between 1.3480 and 1.3500. Should USDCAD falls beneath 1.3480 mark it will likely be pushed into supporting levels of 1.3380 to 1.3410 levels.
