untitled design

USD/CAD rises to 1.3660, while USD rises ahead of FOMC Minutes

  • USD/CAD rises to 1.3660 in a climate of caution awaiting the FOMC Minutes.
  • Fed officials insist on keeping interest rates tight for longer.
  • Trade raises bets in support of an early rate cut by the BoC.

The USD/CAD pair rises towards 1.3660 amid caution ahead of the Federal Open Market Committee (FOMC) Minutes, due to be released later in the day.

The FOMC Minutes will provide more clues on whether policymakers are comfortable with market expectations that the Federal Reserve (Fed) will shift to policy normalization starting with the September meeting.

Ahead of the FOMC Minutes, market sentiment is slightly nervous. The S&P 500 has opened cautiously. The US Dollar Index (DXY), which tracks the dollar against six major currencies, rose to 104.80. The 10-year US Treasury yield rises to 4.43%, as Fed officials continue to stress the need to keep interest rates at their current levels for longer.

Despite the expected decline in US Consumer Price Index (CPI) data for April, Fed officials support the continuation of a restrictive stance on interest rates, as a one-off decline in pressures on prices is insufficient to generate confidence that progress in the disinflation process has resumed.

Meanwhile, the Canadian dollar is expected to face significant pressure as speculation that the Bank of Canada (BoC) will begin cutting interest rates from its June meeting has strengthened following the soft report. April inflation. Statistics Canada reported Tuesday that the BoC's preferred measure of inflation grew at a slower pace of 1.6% from the previous reading of 2% on a year-over-year basis. The annual headline CPI slowed to 2.7%, as expected, from the previous reading of 2.9%.

USD/CAD

Overview
Latest price today 1.3668
Today Daily change 0.0014
Today's daily change 0.10
Today daily opening 1.3654
Trends
daily SMA20 1.3673
50 daily SMA 1.3638
SMA100 daily 1.3556
SMA200 Journal 1,357
Levels
Previous daily high 1.3676
Previous daily low 1.3615
Previous weekly high 1.3691
Previous weekly low 1,359
Previous Monthly High 1.3846
Previous monthly low 1.3478
Daily Fibonacci 38.2 1.3652
Fibonacci 61.8% daily 1.3638
Daily Pivot Point S1 1.3621
Daily Pivot Point S2 1.3587
Daily Pivot Point S3 1,356
Daily Pivot Point R1 1.3682
Daily Pivot Point R2 1.3709
Daily Pivot Point R3 1.3743

Source: Fx Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular