USDCAD Analysis
| Performance after Wednesday | |||||
| Period | Pct | Chg | Momentum | ||
| Wednesday | 0.41% | 56 Pips |  |
||
| Week to-date | 1.49% | 201.4 Pips | |
||
| October | 1.35% | 183 Pips |  |
||
Upcoming key events (London Time)
Thu 01:30 PM USD CPI Inflation Rate (12-mth)
Fri 01:30 PM CAD Labour Force Net Change in Employment Fri 01:30 PM USD Producer Price Index (12-mth)
What happened lately
In the United States, a high-impact economic event scheduled for evaluation is the Consumer Price Index (CPI) Inflation Rate, a significant indicator of consumer price changes over a 12-month period. This metric, to be reported on Thursday at 1:30 PM, is a key gauge for inflationary trends within the American economy. Investors and policymakers closely monitor CPI data as it can influence monetary policy decisions by the Federal Reserve. Should the CPI indicate higher-than-expected inflation, it could prompt the Fed to implement tighter monetary policy, potentially affecting the US dollar’s strength in global markets.
In Canada, the high-impact economic event to watch is the Labour Force Net Change in Employment, which is due on Friday at 1:30 PM. This report will indicate changes in the employment numbers across Canada, shedding light on the country’s labor market conditions. A surge in employment can be perceived as a sign of economic strength, potentially bolstering the Canadian economy. Conversely, a decline in employment figures would signal potential economic challenges that policymakers may need to address. The labor market report is a critical factor considered by the Bank of Canada when determining interest rates.
Also noteworthy for the US is the upcoming Producer Price Index (PPI) report, scheduled for release on Friday at 1:30 PM. The PPI measures wholesale price changes and is a precursor to consumer inflation pressures. A higher PPI implies increased production costs, which may eventually translate to higher retail prices for consumers. Monitoring PPI data is important for understanding potential future inflationary trends, which can again influence the Federal Reserve’s monetary policy decisions.
The USDCAD currency pair movement can be impacted significantly by these upcoming economic reports from both the United States and Canada. Given the recent appreciation of USDCAD to 1.37102, driven potentially by anticipatory market positioning, any deviation from expected inflation or employment figures in these reports could cause volatility in the pair. For instance, a stronger-than-anticipated CPI or PPI in the US might further buoy the USD against the CAD, while robust Canadian employment figures might lend strength to the CAD, potentially tempering or reversing the recent USD gains. Investors will be closely analyzing these data points, making informed decisions on USDCAD currency pair movements based on how they interpret the inflationary and economic strengths reflected in the reports.
Latest from X (Twitter)
What can we expect from USDCAD today?
USDCAD on Wednesday rose 0.41% to 1.37102. Price is above 9-Day EMA while Stochastic is rising.
Updated daily direction for USDCAD looks bullish as the pair ended higher after Wednesday trading session.
Looking ahead for the day, immediate upside resistance level is R1 at 1.37385 with break above could target R2 at 1.37669 or figure level area. While towards the downside, we are looking at daily low of 1.36420 as an important support. Break below this level could weaken the current bullish momentum. A break above 1.37186 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 1.49% over the past few days.
Key levels to watch out:
| R3 | 1.38151 |
| R2 | 1.37669 |
| R1 | 1.37385 |
| Daily Pivot | 1.36903 |
| S1 | 1.36619 |
| S2 | 1.36137 |
| S3 | 1.35853 |
#USDCAD Trending on Twitter
[custom-twitter-feeds hashtag=”#USDCAD” num=3 showheader=false]