Canadian Dollar Settled Flat Against The Greenback On Friday As Markets Buckled Down

10 and one 10 us dollar bill

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  • The Canadian dollar was mostly flat on Friday as it maintained limited momentum.
  • The number of Housing Starts in Canada since November ticked higher.
  • Important events next week include Canadian CPI inflation data and the US Fed rate call.

The Canadian dollar was mostly higher on Friday, but it stuck close to the day’s opening range against the US dollar as markets shuffled in place ahead of the weekend. The University of Michigan US Consumer Sentiment Index ticked slightly lower early in the American trading session, and the highest print of Canadian Housing Starts since November sailed by without much notice from investors.

Canada brings February’s Consumer Price Index (CPI) inflation figures next week, slated for Tuesday, and markets will be quickly pivoting to face the latest rate statement from the Federal Reserve on Wednesday. The Fed will also be updating its Dot Plot projection of interest rate expectations for the next one to five years.

Next week, the latest US Manufacturing Purchasing Managers Index (PMI) will be released on Thursday, followed by Canadian Retail Sales and the US Services PMI component on Friday. Early median market forecasts expect the US Manufacturing PMI to tick slightly lower, and Canadian Retail Sales are expected to contract.


Market Movers: Data Drove Little Chart Movement, Investors Buckled Down to Wait

  • Seasonally-adjusted Canadian Housing Starts for the year ending in February rose to 253.5 thousand, easily clearing the forecast of 230,000 and the previous period’s 223.2 thousand (revised down from 223.6 thousand).
  • Canadian Wholesale Sales in January also recovered to a slim 0.1%, bouncing from the forecast of -0.6%. The previous month’s Wholesale Sales were revised to -0.3% from 0.3%. Next-to-flat prints in the revision-prone indicator are unlikely to drive much investor confidence.
  • The University of Michigan’s US Consumer Sentiment Index ticked slightly lower in March, down to 76.5 versus the market’s forecast hold at the previous 76.9.
  • UoM five-year Consumer Inflation Expectations in March held steady at 2.9% as US consumers remained skeptical that the Fed will successfully drag inflation below 2%.
  • US month-over-month Industrial Production recovered a slim 0.1% in February, snubbing the market’s forecast of 0.0%, but only slightly. The previous month’s Industrial Production was revised down to -0.5% from the initial print of -0.1%.
  • Next Tuesday’s Canadian CPI for the year ended February is expected to increase to 3.1% from the previous reading of 2.9%. The Bank of Canada’s (BoC) Core Consumer Price Index last came in at 2.4%.
  • Canadian Retail Sales are also forecast to contract, with markets expecting a -0.4% print versus the previous 0.9%.


Canadian Dollar Price on Friday

The table below shows the percentage change of the Canadian dollar against other major currencies on Friday.


Technical Analysis: Trading was Flat on Friday as the Canadian Dollar Struggled to Pare Losses Against the Greenback

The Canadian dollar was seemingly mixed to flat on Friday, as it stayed close to the day’s opening range against the US dollar, euro, and Swiss franc. The Canadian dollar climbed around a tenth of a percent against the pound, and was up roughly half a percent against the Japanese yen.

Intraday trading in the USD/CAD currency pair appeared to be stuck on the high side of the 1.3500 level, as the day’s early high rested near the 1.3550 mark and sellers failed to push the pair back below the 1.3510 figure. A near-term supply zone appeared to be pricing in a potential pullback floor near the 1.3460 level, and intraday bids were struggling to pierce a support-turned-resistance level near 1.3550.


USD/CAD Hourly Chart

(Click on image to enlarge) 


More By This Author:

USD/JPY Steady, But On The Low End As Investors Knuckle Down For US CPI Inflation
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