- USD / CAD has been swinging and at one point on Monday rose above 1.2500, but only briefly.
- Consolidated trade is not surprising ahead of key events later in the week.
The USD / CAD It is currently trading flat on the day, although it has seen modest volatility in recent hours, with the pair falling to fresh multi-year lows around 1.2440 shortly after the start of European trading and then, more recently, crossing over. the 1.2500 level. Right now, the pair is trading closer to 1.2475.
Performance of the day
The conditions of the US dollar are moderate this Monday; Bond yields are retreating a bit after last Friday’s big jump, stocks are mixed and so are commodities (precious and industrial metals were up, but energy was down for the most part), all indicative of caution ahead of major US event risk this week, including (more importantly) the release of February US retail sales data on Tuesday and the FOMC rate decision on Wednesday.
Therefore, the fact that the USD / CAD has been oscillating but quite directionless is not particularly surprising. There are also some notable events in Canada this week; February Canadian home starts and January manufacturing sales were already released on Monday, the former in line with expectations (245,900 at the beginning of last month) and the latter above expectations (sales increased by 3.1% versus the 2.5% forecast). Later in the week, consumer price inflation data released on Wednesday for the month of February will be closely scrutinized, as will the New Home Price Index numbers for February (released Thursday) and the numbers for Retail sales for January (posted on Friday).
Technical Levels
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