Canadian Dollar gains ground above 1.3650 ahead of US PMI data

Source Fxstreet
May 23, 2024 06:38
  • USD/CAD trades on a weaker note near 1.3682 in Thursday’s early European session. 
  • The Fed minutes indicated worries over a lack of progress on inflation.
  • The Bank of Canada (BoC) may dampen hopes of a June interest rate cut. 

The USD/CAD pair weakens to 1.3682 on Thursday during the early European session. The pair edges lower despite the weaker Greenback and the lower crude oil prices. Investors await the advanced reading of the US S&P Global PMI for May, which is due on Thursday. On Friday, the Canadian Retail Sales will be released. 

The US Federal Reserve (Fed) decided to keep its benchmark interest rate in a range of 5.25%–5.50% on May 1. According to the FOMC Minutes statement, the committee acknowledged that inflation remains more sticky than they would have thought. Therefore, the Fed officials prefer to be cautious and wait for more data to gain confidence that inflation will get down to its goal of 2%. Investors are pricing in a nearly 50% chance of a September rate cut, according to the CME FedWatch tool. The higher-for-longer mantra is likely to boost the US Dollar (USD) and cap the pair’s downside in the near term. 

On the Loonie front, investors lowered their bets on the June interest rate cut and instead moved to July as the Bank of Canada (BoC) might need to see more sets of inflation, GDP, and jobs data before deciding to cut the interest rate. This, in turn, provides some support to the Canadian Dollar (CAD) and creates a headwind for USD/CAD. The money markets are pricing in a 53% chance of a 25 basis point (bps) cut in June, while the possibility of a July rate cut is fully priced in.

USD/CAD

Overview
Today last price 1.3682
Today Daily Change -0.0013
Today Daily Change % -0.09
Today daily open 1.3695
 
Trends
Daily SMA20 1.3673
Daily SMA50 1.3643
Daily SMA100 1.3559
Daily SMA200 1.3571
 
Levels
Previous Daily High 1.3698
Previous Daily Low 1.3624
Previous Weekly High 1.3691
Previous Weekly Low 1.359
Previous Monthly High 1.3846
Previous Monthly Low 1.3478
Daily Fibonacci 38.2% 1.367
Daily Fibonacci 61.8% 1.3652
Daily Pivot Point S1 1.3646
Daily Pivot Point S2 1.3598
Daily Pivot Point S3 1.3572
Daily Pivot Point R1 1.3721
Daily Pivot Point R2 1.3747
Daily Pivot Point R3 1.3795

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Crude Oil tests higher ground on quiet Wednesday, WTI touches $81.00 West Texas Intermediate (WTI) US Crude Oil tested into fresh Wednesday highs on thin volume, clipping $81.00 per barrel as commodities drift softly higher despite US exchanges shuttered for the Juneteenth holiday.
Author  FXStreet
West Texas Intermediate (WTI) US Crude Oil tested into fresh Wednesday highs on thin volume, clipping $81.00 per barrel as commodities drift softly higher despite US exchanges shuttered for the Juneteenth holiday.
placeholder
USD/JPY Price Analysis: Steadies as Asian session begins, above 158.00The USD/JPY remains flat as Thursday’s Asian session begins, yet it printed minuscule gains of 0.15% on Wednesday.
Author  FXStreet
The USD/JPY remains flat as Thursday’s Asian session begins, yet it printed minuscule gains of 0.15% on Wednesday.
placeholder
EUR/USD escapes Wednesday’s holiday volatility trap, set for wait to meaningful dataEUR/USD cycled on Wednesday with US markets out for a midweek holiday, and the Fiber heads into the back half of the trading week with mid-tier data on the offering, leaving investors to look ahead to Friday’s Purchasing Managers Index (PMI) activity figures for meaningful data releases to drive sentiment in either direction.
Author  FXStreet
EUR/USD cycled on Wednesday with US markets out for a midweek holiday, and the Fiber heads into the back half of the trading week with mid-tier data on the offering, leaving investors to look ahead to Friday’s Purchasing Managers Index (PMI) activity figures for meaningful data releases to drive sentiment in either direction.
placeholder
Bitcoin Dump Expected, BTC In The “Boring Zone” As Whales ExitBitcoin is under immense selling pressure at spot rates, tracking lower from the all-important resistance level of $66,000. Although BTC may even crash below the psychological line at $60,000 towards $56,500 or May 2024 lows, some analysts are upbeat.
Author  Bitcoinist
Bitcoin is under immense selling pressure at spot rates, tracking lower from the all-important resistance level of $66,000. Although BTC may even crash below the psychological line at $60,000 towards $56,500 or May 2024 lows, some analysts are upbeat.
placeholder
Solana Down 40% But Analyst Says Now’s The Time To Buy SOLSolana, one of the top altcoins, trailing Ethereum and the BNB Chain, has not been spared in the recent correction. After rallying to as high as $210 in Q1 2024, the coin is now sliding, facing strong headwinds, plunging, and following the performance posted by Bitcoin and Ethereum.
Author  NewsBTC
Solana, one of the top altcoins, trailing Ethereum and the BNB Chain, has not been spared in the recent correction. After rallying to as high as $210 in Q1 2024, the coin is now sliding, facing strong headwinds, plunging, and following the performance posted by Bitcoin and Ethereum.
goTop
quote