USD/CAD rises to 1.3660 as US Dollar moves higher ahead of FOMC minutes

Source Fxstreet
May 22, 2024 14:14
  • USD/CAD moves higher to 1.3660 amid caution ahead of FOMC minutes.
  • Fed officials emphasize keeping interest rates restrictive for a longer period.
  • Trades raise bets in support for BoC early rate cuts.

The USD/CAD pair moves higher to 1.3660 in Wednesday’s American session. The Loonie asset gains as the US Dollar rises amid caution ahead of the release of the Federal Open Market Committee (FOMC) minutes, which will be published later the day.

The FOMC minutes will provide more cues about whether policymakers are comfortable with market expectations for the Federal Reserve (Fed) shifting to policy normalization from the September meeting.

Ahead of the FOMC minutes, the market sentiment is slightly nervous. The S&P 500 has opened on a cautious note. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rose to 104.80. 10-year US Treasury yields rise to 4.43% as Fed officials keep emphasizing the need to maintain interest rates at their current levels for a longer period.

Despite the expected decline in the US Consumer Price Index (CPI) data for April, Fed policymakers support for continuing a restrictive interest rate stance as a one-time decline in price pressures is insufficient to build confidence that the progress in the disinflation process has resumed.

Meanwhile, the Canadian Dollar is expected to face significant pressure as speculation for the Bank of Canada (BoC) to begin reducing interest rates from the June meeting has strengthened after soft inflation report for April. Statistics Canada reported on Tuesday that BoC’s preferred inflation measure grew at a slower pace of 1.6% from the prior reading of 2% on a year-on-year basis. Annual headline CPI decelerated to 2.7% as expected from the former reading of 2.9%.

USD/CAD

Overview
Today last price 1.3668
Today Daily Change 0.0014
Today Daily Change % 0.10
Today daily open 1.3654
 
Trends
Daily SMA20 1.3673
Daily SMA50 1.3638
Daily SMA100 1.3556
Daily SMA200 1.357
 
Levels
Previous Daily High 1.3676
Previous Daily Low 1.3615
Previous Weekly High 1.3691
Previous Weekly Low 1.359
Previous Monthly High 1.3846
Previous Monthly Low 1.3478
Daily Fibonacci 38.2% 1.3652
Daily Fibonacci 61.8% 1.3638
Daily Pivot Point S1 1.3621
Daily Pivot Point S2 1.3587
Daily Pivot Point S3 1.356
Daily Pivot Point R1 1.3682
Daily Pivot Point R2 1.3709
Daily Pivot Point R3 1.3743

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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