USD/CAD extends downside to 1.3670 with focus on BoC’s Macklem speech

Source Fxstreet
Jun 24, 2024 09:43
  • USD/CAD declines further to 1.3670 ahead of BoC’s Macklem speech.
  • Canadian annual headline CPI is estimated to have declined to 2.6%.
  • Fed policymakers want to see inflation declining for months before shifting to rate cuts.

The USD/CAD pair extends its losing streak for the seventh trading session on Monday. The Loonie asset weakens as the US Dollar Index (DXY) corrects to near 105.66 after failing to extend upside above the crucial resistance of 106.00. The US Dollar (USD) drops as investors shift to risk-perceived assets amid expectations that the Federal Reserve (Fed) will deliver two rate cuts this year.

S&P 500 futures have posted decent gains in the European session, exhibiting a higher risk appetite of investors. 10-year US Treasury yields edge down to 4.25%.

Contrary to market expectations, Fed policymakers signalled in latest interest rate projections that there will be only one rate-cut this year. The Fed continues to reiterate the same despite May’s Consumer Price Index (CPI) report showed that price pressured eased more than expected.

Richmond Fed Bank President Thomas Barkin said on Friday that he wants more conviction before moving on rate cuts. Fed officials would get more conviction after seeing inflation declining for months.

Meanwhile, the Canadian Dollar strengthens even though investors expect that the Bank of Canada (BoC) will deliver subsequent rate cuts. For more clarity on the interest rate outlook, investors will look to the speech from BoC Governor Tiff Macklem, which is scheduled at 17:00 GMT.

This week, investors will also focus on the Canadian CPI report for May, which will be published on Tuesday. Annual headline CPI is expected to have decelerated to 2.6% from 2.7% in April.

USD/CAD

Overview
Today last price 1.3671
Today Daily Change -0.0023
Today Daily Change % -0.17
Today daily open 1.3694
 
Trends
Daily SMA20 1.3699
Daily SMA50 1.3696
Daily SMA100 1.3618
Daily SMA200 1.3585
 
Levels
Previous Daily High 1.3719
Previous Daily Low 1.3675
Previous Weekly High 1.3764
Previous Weekly Low 1.3675
Previous Monthly High 1.3783
Previous Monthly Low 1.359
Daily Fibonacci 38.2% 1.3702
Daily Fibonacci 61.8% 1.3692
Daily Pivot Point S1 1.3673
Daily Pivot Point S2 1.3652
Daily Pivot Point S3 1.3628
Daily Pivot Point R1 1.3717
Daily Pivot Point R2 1.374
Daily Pivot Point R3 1.3761

 

 

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