USD/CAD oscillates in a narrow band above 1.3500, eyes on US, Canadian GDP data

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  • USD/CAD consolidates around 1.3507 in Tuesday’s early Asian session. 
  • Several Fed officials are worried about the risks of moving too quickly on rate cuts.
  • The Canadian inflation data eased more than expected in January, prompting speculation of an early interest rate cut from the BoC.

The USD/CAD pair oscillates in a narrow trading band of 1.3495–1.3515 during the early Asian session on Tuesday. Investors await the fresh catalysts from the incoming economic data this week. The US and Canadian Gross Domestic Product (GDP) will be released on Wednesday and Thursday, respectively. The pair currently trades around 1.3507, adding 0.01% on the day. 

The Federal Reserve (Fed) Chairman Jerome Powell said last month that the central bank wants to gain more confidence that inflation is on a sustainable path down to the 2% target before lowering the interest rate. Additionally, the FOMC minutes indicated that several policymakers were worried about the risks of moving too quickly on rate cuts. The dovish remarks from Fed officials and a data-driven approach weigh on the US Dollar (USD) and act as a headwind for the USD/CAD pair. 

On the Loonie front, the Canadian CPI inflation data eased more than expected to 2.9% in January. The report triggered speculation of an early interest rate cut from the Bank of Canada (BoC). The BoC's next monetary policy meeting is scheduled for March 6, and investors anticipate the rate will stay on hold at 5.0%. However, the markets have priced in 58% odds of a rate cut in the April meeting, a rise from a 33% chance before the CPI data were published.

On Tuesday, the US Durable Goods Orders, Consumer Confidence, and Richmond Fed Manufacturing Index are due. Also, the Fed’s Michael Barr is set to speak later in the day. The US and Canadian GDP for Q4 will be the highlights this week. This event could trigger volatility in the market and give a clear direction to the USD/CAD pair. 

 

USD/CAD

Overview
Today last price 1.3509
Today Daily Change 0.0003
Today Daily Change % 0.02
Today daily open 1.3506
 
Trends
Daily SMA20 1.3481
Daily SMA50 1.3416
Daily SMA100 1.3542
Daily SMA200 1.3478
 
Levels
Previous Daily High 1.3529
Previous Daily Low 1.3492
Previous Weekly High 1.3536
Previous Weekly Low 1.3441
Previous Monthly High 1.3542
Previous Monthly Low 1.3229
Daily Fibonacci 38.2% 1.3506
Daily Fibonacci 61.8% 1.3515
Daily Pivot Point S1 1.3489
Daily Pivot Point S2 1.3472
Daily Pivot Point S3 1.3452
Daily Pivot Point R1 1.3526
Daily Pivot Point R2 1.3546
Daily Pivot Point R3 1.3564

 





 

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