USDCAD Analysis
| Performance after Tuesday | |||||
| Period | Pct | Chg | Momentum | ||
| Tuesday | 0.26% | 35 Pips |  |
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| Week to-date | 1.03% | 139.2 Pips | |
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| October | 0.89% | 121 Pips |  |
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Upcoming key events (London Time)
Wed 07:00 PM USD FOMC Meeting Minutes Thu 01:30 PM USD CPI Inflation Rate (12-mth)
What happened lately
In the United States, there are no significant economic updates as of the current period. However, market participants are closely anticipating the upcoming high-impact economic events, which could influence market sentiments and financial decisions. The Federal Open Market Committee (FOMC) Meeting Minutes are set to be released on Wednesday at 07:00 PM, providing insights into the deliberations and considerations behind recent monetary policy decisions. Investors often scrutinize this document to gauge the committee’s outlook on inflation and economic activity, which can affect interest rate expectations. Additionally, the Consumer Price Index (CPI) Inflation Rate for the 12-month period will be published on Thursday at 01:30 PM. This data is a critical measure of inflation and is particularly significant given current concerns about potential price increases.
In Canada, the absence of major economic news signifies a lack of immediate domestic triggers to sway market movements in the Canadian dollar. Consequently, any fluctuations in USDCAD may be more heavily influenced by external factors, such as developments in the United States. With the focus on the upcoming US economic data releases, any surprises or shifts in market expectations regarding US inflation or monetary policy could have ripple effects on the Canadian dollar value against the US dollar.
The USDCAD exchange rate rose by 0.26% to 1.36480 on Tuesday. The upcoming FOMC Meeting Minutes and US CPI Inflation Rate report are regarded as high-impact events that could potentially drive further volatility in the currency pair. If the FOMC minutes suggest a more hawkish stance than anticipated, or if inflation data indicates higher-than-expected price pressures, it could strengthen the US dollar by increasing the probability of further interest rate hikes by the Federal Reserve. This would likely lead to additional upward pressure on the USDCAD pair. Conversely, a dovish tone or softer-than-expected inflation figures could weaken the US dollar, resulting in a potential depreciation against the Canadian dollar. Market participants will undoubtedly be assessing these events carefully to adjust their positions and expectations accordingly.
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What can we expect from USDCAD today?
USDCAD on Tuesday rose 0.26% to 1.36480. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCAD looks bullish as the pair ended higher after Tuesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 1.36801 with break above could target R2 at 1.37121 or figure level area. While towards the downside, we are looking at daily low of 1.36060 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.36751 may suggest continuation after recent positive movement.
For the week to-date, take note that USDCAD is bullish as the pair continued to trade higher and is up by 1.03% over the past few days.
Key levels to watch out:
| R3 | 1.37492 |
| R2 | 1.37121 |
| R1 | 1.36801 |
| Daily Pivot | 1.3643 |
| S1 | 1.3611 |
| S2 | 1.35739 |
| S3 | 1.35419 |
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