USD/CAD trades on a weaker note above the mid-1.3400s, US PPI data looms

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  • USD/CAD trades in negative territory for the third consecutive day near 1.3461. 
  • US Retail Sales declined in January, weaker than expected. 
  • The Canadian employment data suggests the BoC might push back their expectation of rate cuts to June from April.
  • The US January Producer Price Index (PPI) will be the highlight on Friday.

The USD/CAD pair remains under selling pressure above the mid-1.3400s during the early Asian trading hours on Friday. A rise in oil prices provides some support to the commodity-linked Loonie and weighs on the pair. Investors await the US January Producer Price Index (PPI) on Friday for fresh impetus, which is projected to show an increase of 0.1% MoM and 0.6% YoY. The pair currently trades around 1.3461, losing 0.05% on the day. 

Data released from the US Census Bureau on Thursday reported that US Retail Sales fell 0.8% MoM in January from a 0.4% rise in December, weaker than the estimation of a 0.1% decline. Meanwhile, the Retail Sales Control Group arrived at -0.4% MoM versus 0.6% prior. Financial markets believe that weaker US Retail Sales might convince the Federal Reserve (Fed) to cut interest rates sooner, which weighs on the US Dollar (USD) and creates a headwind for the USD/CAD pair. 

The Canadian employment data suggests that the Bank of Canada (BoC) might push back its expectation of rate cuts to June from April. The BoC Governor Tiff Macklem has not yet been indicated about the timeline for interest rate cuts, but he said that the Canadian central bank has shifted from debating whether interest rates are high enough, to how long the central bank needs to keep rates at current levels. Meanwhile, the higher oil price continues to lift the Canadian Dollar (CAD) as Canada is the largest oil exporter to the United States. 

 

USD/CAD

Overview
Today last price 1.3463
Today Daily Change -0.0081
Today Daily Change % -0.60
Today daily open 1.3544
 
Trends
Daily SMA20 1.3469
Daily SMA50 1.3417
Daily SMA100 1.3553
Daily SMA200 1.3478
 
Levels
Previous Daily High 1.3573
Previous Daily Low 1.3531
Previous Weekly High 1.3544
Previous Weekly Low 1.3413
Previous Monthly High 1.3542
Previous Monthly Low 1.3229
Daily Fibonacci 38.2% 1.3547
Daily Fibonacci 61.8% 1.3557
Daily Pivot Point S1 1.3526
Daily Pivot Point S2 1.3507
Daily Pivot Point S3 1.3484
Daily Pivot Point R1 1.3567
Daily Pivot Point R2 1.3591
Daily Pivot Point R3 1.3609

 

 

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