USD/CAD Depreciates To Near 1.3560 On Higher Crude Oil Prices, US Manufacturing PMI Eyed

Photo by Michelle Spollen on Unsplash

  • USD/CAD loses ground as WTI oil price improves to near $78.10 during the Asian hours.
  • Canadian Dollar might have received support on the upbeat Canadian GDP Annualized.
  • CME FedWatch Tool suggests the probability of rate cuts in March is at 3.0%.

USD/CAD breaks the winning streak that began on February 23, which could be attributed to the improved Crude oil prices as Canada is the largest oil exporter to the United States (US). The pair edges lower to near 1.3560 during the Asian session on Friday.

Additionally, upbeat Canada’s Gross Domestic Product (GDP) Annualized might have provided some support to underpinning the Canadian Dollar (CAD). The data reported a growth of 1.0% in the fourth quarter of 2023. The market expectation was an increase of 0.8% against the previous decline of 0.5%. Moreover, GDP (QoQ) rose by 0.2% against the previous decline of 0.1%.

The West Texas Intermediate (WTI) oil price is showing improvement, nearing $78.10, as speculation arises regarding the potential extension of supply cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) and ongoing tensions in the Middle East.

Recent data, including Gross Domestic Product (GDP) figures and the US Personal Consumption Expenditures - Price Index from the United States (US), has led to a postponement in market expectations for the Federal Reserve's (Fed) first-rate cut. This has provided support for the US Dollar (USD). Investors are now awaiting the final US S&P Global Manufacturing PMI for February, scheduled for release on Friday.

According to the CME FedWatch Tool, the probability of rate cuts in March is at 3.0%, with expectations decreasing to 23.1% in May and increasing to 52.2% in June. Atlanta Fed President Raphael W. Bostic commented that recent inflation data indicates a challenging path toward achieving the central bank's 2% inflation target. Moreover, Chicago Fed President Austan Dean Goolsbee anticipates the first-rate cuts later this year but refrained from specifying the exact timeline.


Today last price 1.3565
Today Daily Change -0.0007
Today Daily Change % -0.05
Today daily open 1.3572


Daily SMA20 1.3504
Daily SMA50 1.3429
Daily SMA100 1.354
Daily SMA200 1.3478


Previous Daily High 1.3598
Previous Daily Low 1.3541
Previous Weekly High 1.3536
Previous Weekly Low 1.3441
Previous Monthly High 1.3606
Previous Monthly Low 1.3366
Daily Fibonacci 38.2% 1.3563
Daily Fibonacci 61.8% 1.3576
Daily Pivot Point S1 1.3543
Daily Pivot Point S2 1.3514
Daily Pivot Point S3 1.3486
Daily Pivot Point R1 1.3599
Daily Pivot Point R2 1.3627
Daily Pivot Point R3 1.3656

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