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USD/CAD extends decline to 1.3670, focus on Tiff Macklem speech

  • USD/CAD falls further to 1.3670 ahead of BoC Governor Tiff Macklem’s speech.
  • Canada’s annual headline CPI is estimated to have declined to 2.6%.
  • Fed officials want to see inflation decline for months before moving to rate cuts.

The USD/CAD pair extends its losing streak for the seventh trading session on Monday. The USD/CAD pair weakens as the DXY Dollar Index corrects near 105.66 after failing to extend above the crucial resistance of 106.00. The US dollar (USD) falls as investors move into perceived risky assets amid expectations that the Federal Reserve (Fed) will make two rate cuts this year.

S&P 500 futures have posted decent gains in the European session, showing increased risk appetite among investors. US 10-year Treasury yields fall to 4.25%.

Contrary to market expectations, Fed officials indicated in the latest interest rate projections that there will only be one rate cut this year. The Fed continues to reiterate the same even though the Consumer Price Index (CPI) report for May showed that price pressure eased more than expected.

Richmond Fed Bank President Thomas Barkin said Friday he wants more conviction before proceeding with rate cuts. Fed officials would gain more conviction after seeing inflation decline for months.

Meanwhile, the Canadian dollar strengthens even as investors expect the Bank of Canada (BoC) to make subsequent rate cuts. For more clarity on the interest rate outlook, investors will be watching BoC Governor Tiff Macklem’s speech scheduled for 17:00 GMT.

This week, investors will also focus on Canada’s CPI report for May, due out on Tuesday. The annual headline CPI is expected to have slowed to 2.6% from 2.7% in April.

USD/CAD

Summary
Latest price today 1.3671
Today’s daily change -0.0023
Daily change % today -0.17
Today’s daily opening 1.3694
Trends
SMA20 Journal 1.3699
SMA50 Daily 1.3696
SMA100 Journal 1.3618
SMA200 Journal 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

Source: Fx Street

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