The USD\/CAD trims Monday\u2019s losses and stages a comeback, soaring in the North American session above the 1.2600 mark, approaching the 50-day moving average (DMA) at 1.2651. The USD\/CAD is trading at 1.2625.
Market sentiment and hawkish Fed lifted the USD\/CAD above 1.2600. The market sentiment remains mixed. European equities are about to end in the red, while US stocks record gains between 1.29% and 2.33%. The greenback remains firmly bid, underpinned by US Treasury yields, while oil prices fell, so all those factors dragged the Canadian dollar towards negative territory.
Factors like the Ukraine \u2013 Russia conflict, the lack of advancement in peace talks, and Russia\u2019s offensive in Eastern Ukraine maintain global inflationary pressures high, including energy. That capped the greenback\u2019s upside action, supported by a hawkish St. Louis Fed\u2019s Bullard, who said that inflation is \u201cfar too high\u201d and reiterated that the Fed needs to go above neutral, around 3.50%.
In the meantime, the US docket featured Chicago\u2019s Fed President Charles Evans, who said that the US economy \u201cwill do very well even as rates rise.\u201d Evans added that he supports a \u201ccouple\u201d of 50 bps increases, which could lift rates to the 1.25%-2.50% neutral rate.
Aside from this, the US economic docket featured Home Sales statistics, which analysts mainly ignored. Regarding the Canadian economic docket, inflation figures on Wednesday would shed some light after the Bank\u2019s of Canada first 50-bps rate increase, which pushed rates to the 1% threshold.
TD Analysts wrote on a note that \u201cWe look for CPI to firm to 6.1% y\/y in March, with prices up 0.9% m\/m. Energy will provide the main driver, led by an 11% increase in gasoline, alongside another significant contribution from food. Motor vehicles, clothing, and shelter should help drive strength in the ex. food\/energy aggregate, while the BoC\u2019s core inflation measures should firm to 3.6% y\/y on average.\u201d
The USD\/CAD is trading above the 200-DMA, the first sign that the pair could be turning bullish and is preparing to jump towards the 50-DMA at 1.2651. Furthermore, oscillators support a bullish scenario and have enough room before reaching overbought conditions, opening the door for further USD\/CAD upside.
The USD\/CAD first resistance would be the 50-DMA at 1.2651. A breach of the latter would expose April\u2019s high at 1.2676, followed by the 100-DMA at 1.2680 and then the 1.2700 figure.
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The USD\/CAD trims Monday\u2019s losses and stages a comeback, soaring in the North American session above the 1.2600 mark, approaching the 50-day moving average (DMA) at 1.2651. The USD\/CAD is trading at 1.2625.Market sentiment and hawkish Fed lifted the USD\/CAD above 1.2600. The market sentiment remains mixed. European equities are about to end in the …<\/p>\n","protected":false},"author":13,"featured_media":51601,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[8121,9418,6885,8367,7015],"class_list":["post-64110","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-bullard","tag-evans","tag-fed","tag-us-dollar","tag-usd-cad"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/64110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=64110"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/64110\/revisions"}],"predecessor-version":[{"id":64115,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/64110\/revisions\/64115"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/51601"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=64110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=64110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=64110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}