USDCAD edges higher amid steady Bank of Canada policy
USDCAD Analysis
| Performance after Wednesday | |||
| Period | Pct | Chg | Momentum |
| Wednesday | 0.0073% | 1.0 Pips | ▲ |
| Week to-date | 0.1171% | 16.0 Pips | ▲ |
| April | -1.653% | -230.0 Pips | ▼ |
Upcoming key events (GMT+8)
| Time (GMT+8) | Currency | Impact | Event |
| Thu 08:30 PM | USD | HIGH | PCE Price Index, excluding food and energy (1-mth) |
| Thu 08:30 PM | USD | HIGH | PCE Price Index, excluding food and energy (12-mth) |
| Thu 08:30 PM | USD | HIGH | GDP annual rate |
| Thu 08:30 PM | USD | HIGH | GDP Price Index (Quarterly) |
What happened lately
The USDCAD pair experienced a modest increase on Wednesday, rising by 0.0073% to close at 1.36840. The trading session saw the pair reach a high of 1.37100 and a low of 1.36650. This slight upward movement in the USDCAD exchange rate occurred against the backdrop of a steady Bank of Canada policy interest rate, which was announced at 2.25%. This rate was in line with both the consensus and the previous rate, indicating no immediate change in monetary policy from the Canadian central bank.
Looking ahead, market participants are likely to focus on a series of high-impact economic releases from the United States scheduled for Thursday at 08:30 PM GMT+8. These include the PCE Price Index, excluding food and energy, for both the 1-month and 12-month periods, as well as the GDP annual rate and the GDP Price Index for the quarter. These data points are expected to provide further insights into the economic health of the United States and could influence the USDCAD pair depending on the outcomes relative to market expectations.
Overall, the market sentiment appears to be cautiously optimistic, with traders awaiting the upcoming U.S. economic data to gauge potential impacts on the currency pair. The steady interest rate from the Bank of Canada suggests a stable economic outlook for Canada, while the anticipation of U.S. data releases keeps the market on alert for potential volatility. As such, traders in Southeast Asia and beyond will be closely monitoring these developments to inform their trading strategies in the forex market.
What can we expect from USDCAD today?
As we approach the midweek trading session, USDCAD is exhibiting a bullish daily outlook with a slight increase of 0.0073% to close at 1.36840. Traders in Southeast Asia should be attentive to the pair’s movements, given its proximity to key resistance and support levels.
📈 Bull Scenario If USDCAD continues its upward momentum, a break above the daily high of 1.37100 could trigger further bullish activity. Traders should watch for potential resistance at R1, located at 1.37076, and further upward at R2, positioned at 1.37313. The current bullish weekly outlook supports this scenario, suggesting sustained buying interest. | 📉 Bear Scenario Conversely, a shift in momentum could see USDCAD testing lower levels, particularly if it dips below the daily pivot of 1.36863. In such a case, traders should monitor support at S1, which stands at 1.36626, and further down at S2, at 1.36413. A breach of these levels could indicate a bearish reversal despite the overall bullish weekly sentiment. |
Key levels to watch out:
| R3 | 1.37526 |
| R2 | 1.37313 |
| R1 | 1.37076 |
| Daily Pivot | 1.36863 |
| S1 | 1.36626 |
| S2 | 1.36413 |
| S3 | 1.36176 |
