USDCAD on Friday dropped -0.18% to 1.31980. Week ending 2023-06-16 moved lower by -1.07%. What you need to know.

USDCAD Analysis

Friday-0.18%-23.2 Pips
Week 2023-06-16-1.07%-143 Pips
June-2.74%-372 Pips

Upcoming key events for the new week (London Time)

Mon 06:00 AM USD Juneteenth Freedom Day
Wed 01:30 PM CAD Retail Trade Turnover (1-mth)
Thu 01:30 PM USD Initial Unemployment Insurance Claims
Thu 03:00 PM USD Federal Reserve Chair Jerome Powell testifies

What happened over the week

🇺🇸 U.S. UoM 5-year Consumer Inflation Expectation in June preliminary estimate below forecast and dropped to 3% compared to previous figure 3.1% in May Source: University of Michigan
🇺🇸 In the week ending 10 June, Initial Unemployment Insurance Claims in U.S. was unchanged at 262K compared to previous figure 262K (revised from 261K) Source: Department of Labor
🇺🇸 U.S. Philadelphia Fed Manufacturing Survey in June below forecast and dropped to -13.7 points compared to previous figure -10.4 points in May
🇺🇸 U.S. Monthly Retail Trade (1-mth) in May exceed forecast and dropped to 0.3% compared to previous figure 0.4, revised from 0.4% in April Source: Census Bureau
🇺🇸 U.S. Interest Rate Projections rose to 5.6% compared to previous rate 5.1%
🇺🇸 U.S. Fed Interest Rate Decision (Federal Funds Rate) unchanged at 5.25% compared to previous rate 5.25% Source: Federal Reserve
🇺🇸 U.S. CPI Inflation Rate (12-mth) in May below forecast and dropped to 4% compared to previous figure 4.9% in April Source: Bureau of Labor Statistics
🇺🇸 U.S. Monthly Budget Statement in May exceed forecast and dropped to -240$ compared to previous figure 176$ in April Source: Bureau of the Fiscal Service

USDCAD Daily Chart by TradingView

What can we expect from USDCAD for the new week and what happened on Friday?

USDCAD on Friday dropped -0.18% to 1.31980. Price is below 9-Day EMA while Stochastic is falling in oversold zone. For the week ending 2023-06-16, the pair dropped -1.07% or -143 pips lower.

Looking ahead on Monday, USDCAD looks bearish as the pair posted lower in Friday trading session.

For the new week, our technical outlook looks bearish, immediate support level is at 1.31201 (WS1) with break below could see further selling pressure towards 1.30423 (WS2). For potential buyers, as the current momentum is bearish, we prefer to look at firm break of the week high of 1.33836 as an important indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below week low of 1.31740 would indicate selling pressure.

For the month of June, USDCAD is down by -2.74% or -372 pips lower.

Weekly key levels to watch out:

Weekly Pivot1.32519

You might also be interested in:

Manufacturing and Trade Inventories and Sales Source: Census Bureau
Advanced Monthly Sales for Retail and Food Services Source: Census Bureau
Monthly Survey of Manufacturing, April 2023 Source: Statistics Canada
Federal Reserve Board and Federal Open Market Committee release economic projections from the June 13-14 FOMC meeting Source: Federal Reserve
Federal Reserve issues FOMC statement Source: Federal Reserve
CPI for all items rises 0.1% in May; shelter and used cars and trucks up Source: Bureau of Labor Statistics

Leave a comment

Your email address will not be published. Required fields are marked *