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Monday, March 4, 2024

Every day Foreign exchange Information and Watchlist: USD/CAD

The U.S. greenback is buying and selling decrease in opposition to the Loonie forward of the U.S. PPI launch!

Will USD/CAD attract sufficient patrons to increase its January uptrend earlier than the week ends?

Earlier than shifting on, ICYMI, yesterday’s watchlist checked out USD/JPY’s short-term uptrend forward of the U.S. CPI launch. Make sure you take a look at if it’s nonetheless a superb play!

And now for the headlines that rocked the markets within the final buying and selling periods:

Contemporary Market Headlines & Financial Information:

U.S. CPI for December: 3.4% y/y (3.1% y/y forecast/earlier); Core CPI at 3.9% y/y as forecasted vs. 4.0% y/y earlier; the m/m fee was robust at 0.3% m/m (0.1% m/m forecast/earlier)

U.S. Preliminary Jobless Claims: 202K (209K forecast; 203K earlier)

ECB President Lagarde in an interview with France 2 TV: “I feel that charges, barring any additional shocks or surprising information, is not going to proceed to go up.

Japan’s annual financial institution loans grew by 3.1% in December in opposition to 2.7% y/y estimates, 2.8% y/y progress in November

Japan’s present account surplus for November: 1.89T JPY (2.18T JPY forecast, 2.62T JPY earlier)

Crude oil greater by as a lot as 2.5% because the U.S. and its allies launched joint army strikes in opposition to Houthi rebels in Yemen

U.Ok.’s financial system grew by 0.3% m/m in November after an upwardly revised 0.3% m/m uptick in October with companies output (0.4% m/m) as the principle contributor

U.Ok.’s industrial manufacturing in November: 0.3% m/m as anticipated (-1.3% m/m earlier)

France’s family consumption in November: 0.7% m/m (-0.1% m/m forecast, -0.9% m/m earlier)

Value Motion Information

Overlay of CAD vs. Major Currencies

Overlay of CAD vs. Main Currencies Chart by TradingView

Crude oil costs traded greater on Friday after the U.S. and Britain launched joint army strikes in opposition to Houthi insurgent targets in Yemen following the motion’s assaults within the Pink Sea.

Not surprisingly, the oil-related Canadian greenback benefited from the uptick in oil costs.

CAD is buying and selling the strongest in opposition to CHF, EUR, and GBP and is registering the least positive factors in opposition to NZD, JPY, and AUD.

In the meantime, optimism over future Fed rate of interest cuts saved threat belongings afloat in opposition to the “protected haven” counterparts.

Upcoming Potential Catalysts on the Financial Calendar:

U.S. core PPI studies at 1:30 pm GMT

Use our new Forex Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion!  ️

USD/CAD 15-min Forex

USD/CAD 15-min Foreign exchange Chart by TradingView

As talked about above, the Canadian greenback gained pips in opposition to its main counterparts after escalating tensions within the Center East lifted crude oil and the oil-related Loonie greater within the charts.

USD/CAD, specifically, was hit by a one-two punch of upper oil costs and merchants pricing in Fed rate of interest cuts regardless of stickier-than-expected excessive inflation information within the U.S.

Has the pair seen its intraday lows immediately? Or are the bears simply getting began?

On a technical foundation, USD/CAD halted its downswing at immediately’s S1 (1.3350) Pivot Level stage. The psychological space can be not removed from an ascending channel assist AND has been a key inflection level for the pair in January.

Final however not least, USD/CAD is buying and selling about 37 pips from its open costs, virtually precisely half of the 67-pip full common every day volatility for USD/CAD.

A transfer again to the channel and to the 1.3385 ranges could also be on the desk if the escalating tensions within the Center East translate to general threat aversion within the U.S. session. USD/CAD might also see one other upswing if immediately’s U.S. PPI studies assist “greater for longer” bets for the Fed.

Look out for bullish candlesticks which will attract patrons and preserve USD/CAD inside its ascending channel. Then, relying on USD’s potential bullish momentum, the 1.3380 earlier resistance and 1.3400 mid-channel and psychological stage could appeal to intraday profit-takers.

How about you? Do you see USD/CAD bouncing greater within the subsequent couple of hours? Or are we trying in the beginning of a short-term bearish breakout?

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