USDCAD rises to approximately 1.3540 mark, with attention on Canada the Consumer Price Index and US Fed Rate policies.

Highlights

USDCAD is expected to extend its positive run on Monday.
The US greenback may gain momentum on anticipation that the Federal Reserve would retain high rates of interest to battle price increases.
The increased Crude price might minimize the CAD deficits.

Interest Rate Speculations

The USDCAD begins the week by posting its 3rdstraight day of advances on Monday. Rising to about 1.3540 level within the Asian trade period. Speculation that the Fed would retain its stance of keeping increased rates of interest to fight inflation. Which might boost the US dollar, mitigating the USDCAD duo’s major risk of falling. The US Fed is going to revise its Dot-plot projections, which outline its rate estimates over the following between 1-5 years.

At the same time, the DXY has trouble staying in an upward trend, holding near 103.50 mark at the point of posting. Yet, a fall on the US currency $ is visible as US Treasury yields have corrected. The two-year and ten-year US Treasury rates are now 4.72 percent and 4.30 percent, accordingly.

On the other hand, the CAD could gain by the rise in the price of crude oil. The WTI price of oil remains to rise. Hitting approximately $80.90 / barrel by the time of this writing. Fears about shortages as a result of increased worldwide threats are driving the upward trend in the price of crude oil.

Investors are presumably awaiting the publication of the latest Canada’s (CPI) figures on Tuesday. Consumer prices are expected to rise YoY in Feb. A stronger CPI report might boost the CAD. Furthermore, the United States Manufactures PMI is scheduled to get announced this Thursday.

Technical Indicators & Signals

Key Support and Resistance Levels

S3 (1.31767), S2 (1.3358), S1 (1.34191),     R1 (1.36056), R2 (1.36056), and R3 (1.38981).