- The dollar rises slightly on the rise in US yields before the Fed and key data.
- Stocks and crude oil prices cut losses during the American session.
- USD/CAD remains above 1.3300, risks remain on the downside.
The USD/CAD it reached a high during the American session on Monday at 1.3357, the highest level since Thursday. It is hovering around 1.3350, slightly away from the critical 1.3300 support zone.
The January low around 1.3300 is the key level to the downside – a break down could open the door for an extension towards 1.3220 (November low) and the 200-day SMA today. at 1.3204. To the upside, a consolidation above 1.3360 would put attention at 1.3400 and the 20-day SMA at 1.3420.
The dollar rises on Monday against a backdrop of rising yields and risk aversion. The 10-year Treasury yield stands at 3.54% and the 2-year yield is trading at 4.26%, the highest levels since January 12. The Dow Jones falls 0.39% and the Nasdaq 1.48%.
Prices are limited on Monday. On Tuesday, Canada will report GDP data for November, which is expected at 0%. Analysts at TD Securities expect flat GDP at the industry level, with subdued performance in both goods and services “with new flash estimates expected to show modest expansion in December.” They note that the “ultra-sensitive data release is on hold,” with Bank of Canada moving towards a pause. “We expect the cuts to start in January and the data to deteriorate in the coming months.”
It will be a busy week in the US, with the FOMC meeting on Wednesday and the Non-Farm Payrolls report on Friday. The Federal Reserve is expected to raise interest rates by 25 basis points. The Fed’s outlook will be crucial and could unleash volatility across the currency board.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
