The Canadian dollar continues to have an uneventful week. In the Tuesday’s session, the pair is trading at 1.2587, up 0.07% on the day. On the release front, there are no Canadian indicators on the schedule. In the US, the sole indicator is the NFIB Small Business Index, which improved to 106.9, above the estimate of 106.2 points. On Wednesday the US releases CPI and retail sales indicators. Traders should be prepared for movement from USD/CAD during the North American session.
Last week’s market selloff boosted the US dollar, at the expense of the Canadian dollar and most other major currencies. The Canadian dollar dropped 1.2% last week, and is down 2.2% in February, erasing the gains we saw in January. Interestingly, the catalyst for the current turbulence has been solid economic data in the US, namely, improved payrolls and wage growth reports. Is the correction over? It’s too early too tell, since much of the sell-off is related to investor concerns over possible interest rate hikes by major central banks. The Bank of England has said it could accelerate its pace of hikes, and the Federal Reserve could follow suit if inflation moves higher.
USD/CAD ratio is almost unchanged in the Tuesday session. Currently, long and short positions are evenly split, indicative of a lack of trader bias towards as to what direction USD/CAD takes next.USD/CAD was flat in the Asian session and has posted limited movement in the European session
•1.2494 is providing support
•1.2630 is providing resistance
•Current range: 1.2494 to 1.2630
Further levels in both directions:
•Below: 1.2494, 1.2351, 1.2190 and 1.2060
•Above: 1.2630, 1.2757 and 1.2855
Last week’s market selloff boosted the US dollar, at the expense of the Canadian dollar and most other major currencies. The Canadian dollar dropped 1.2% last week, and is down 2.2% in February, erasing the gains we saw in January. Interestingly, the catalyst for the current turbulence has been solid economic data in the US, namely, improved payrolls and wage growth reports. Is the correction over? It’s too early too tell, since much of the sell-off is related to investor concerns over possible interest rate hikes by major central banks. The Bank of England has said it could accelerate its pace of hikes, and the Federal Reserve could follow suit if inflation moves higher.
USD/CAD ratio is almost unchanged in the Tuesday session. Currently, long and short positions are evenly split, indicative of a lack of trader bias towards as to what direction USD/CAD takes next.USD/CAD was flat in the Asian session and has posted limited movement in the European session
•1.2494 is providing support
•1.2630 is providing resistance
•Current range: 1.2494 to 1.2630
Further levels in both directions:
•Below: 1.2494, 1.2351, 1.2190 and 1.2060
•Above: 1.2630, 1.2757 and 1.2855
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