USD/CAD Moves Sideways After Recent Losses, Clings To 1.3540

Photo by Michelle Spollen on Unsplash

  • USD/CAD treads water to hold ground post recent declines.
  • The decline in the WTI price weighs on the Canadian Dollar.
  • Fed’s Goolsbee suggested that the Fed may consider rate cuts despite upbeat consumer prices.

USD/CAD makes an effort to recover its recent declines observed in the previous session, spurred by a muted US Dollar (USD) possibly due to decreased US bond yields. The pair is hovering around 1.3540 during the Asian session on Thursday. Additionally, the drop in Crude oil prices might exert downward pressure on the Canadian Dollar (CAD), consequently providing support for the USD/CAD pair.

West Texas Intermediate (WTI) Crude oil price continues its downward trend for the second consecutive day, primarily driven by a larger-than-expected increase in US Crude oil inventories. This significant buildup in inventories outweighs concerns about potential supply disruptions stemming from geopolitical tensions in the Middle East. As a result, the WTI price declines to near $76.10 per barrel at the moment of writing.

The USD/CAD pair has encountered challenges amid prevailing market sentiment, which now strongly suggests that the Federal Reserve (Fed) will keep interest rates unchanged in the upcoming meeting. According to the FedWatch Tool, the probability of the Fed maintaining interest rates in the March meeting has surged to nearly 90%. Additionally, there is a modest 37% probability of a rate cut in May, with the likelihood of a 25 basis points (bps) rate cut increasing to approximately 53% in May.

Furthermore, improved risk appetite sentiment has led to a decline in US Treasury yields, with the 2-year and 10-year US yields standing at 4.55% and 4.23%, respectively, by the press time. Moreover, Chicago Fed President Austan Goolsbee's remarks on Wednesday sought to assuage market concerns by suggesting that a higher-than-anticipated reading on consumer prices does not necessarily mean that the Federal Reserve won't consider lowering interest rates in 2024.


USD/CAD: TECHNICAL LEVELS TO WATCH

OVERVIEW
Today last price 1.3541
Today Daily Change -0.0003
Today Daily Change % -0.02
Today daily open 1.3544

 

TRENDS
Daily SMA20 1.3469
Daily SMA50 1.3417
Daily SMA100 1.3553
Daily SMA200 1.3478

 

LEVELS
Previous Daily High 1.3573
Previous Daily Low 1.3531
Previous Weekly High 1.3544
Previous Weekly Low 1.3413
Previous Monthly High 1.3542
Previous Monthly Low 1.3229
Daily Fibonacci 38.2% 1.3547
Daily Fibonacci 61.8% 1.3557
Daily Pivot Point S1 1.3526
Daily Pivot Point S2 1.3507
Daily Pivot Point S3 1.3484
Daily Pivot Point R1 1.3567
Daily Pivot Point R2 1.3591
Daily Pivot Point R3 1.3609


More By This Author:

USD/CAD Price Analysis: Corrects Gradually Below 1.3550
USD/CAD Inches Lower To Near 1.3550 As US Dollar Declines On Downbeat US Yields
GBP/USD Price Analysis: Trades With A Positive Bias Around 1.2600 Ahead Of UK CPI

Disclosure: Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.