VOT Research Desk
After trying a retreat move around 1.3300, the USDCAD pair has sensed selling pressure around 1.3350 in the Tokyo session.
The asset has gone sideways, indicating additional inventory dispersion and further weakening in the counter.
Meanwhile, the risk profile has risen further as S&P500 futures extend their gains following a strong rally on Thursday. The US dollar index (DXY) has retested its day’s low of 108.00 and is expected to fall further.
The Fed has often said that its long-term inflation expectations are well-anchored at roughly 2%. Previously, the economic figures came in at 2.9%.
Meanwhile, Loonie bulls are bolstered by hawkish remarks from Bank of Canada (BOC) Governor Tiff Macklem and a solid recovery in oil prices.
During an interview with CBC News in late New York session, BOC Governor stated that Canadians should expect even more rate hikes to come on top of the six that have already happened this year.
|
Daily SMA20 |
1.3626 |
|
Daily SMA50 |
1.3523 |
|
Daily SMA100 |
1.3225 |
|
Daily SMA200 |
1.2976 |
