The US dollar gains momentum as US yields surge ahead of FOMC decision. On the data front; Canada\u2019s CPI rose 0.4% in February, core up 0.5%.<\/p>\n\n\n\n
The USD\/CAD pair\u2019s support lies at 1.3650 with no change. The USD\/CAD pair bottomed at 1.3643 following the release of Canadian inflation data, the lowest since March 7 and then rebounded sharply benefitting from the stronger US Dollar, approaching 1.3740.<\/p>\n\n\n\n
The move to the upside occurred amid rising US yields that boosted the US dollar. The US 10-year yield approached 3.60% and the 2-year is back above 4.00%.<\/p>\n\n\n\n
The Federal Reserve has already started its two-day monetary policy meeting. On Wednesday, the US central bank is expected to announce a 25 bps rate hike to 4.75% – 5.00%. Attention is set on how the Fed assess current development regarding the banking sector turmoil. Ahead of the decision, the US dollar is posting mixed results.<\/p>\n\n\n\n
Data released on Tuesday showed the Consumer Price Index dropped to the lowest level in 13 months from 5.9% to 5.2%, below the 5.4% of market consensus; the core rate fell from 5% to 4.7%. The CAD rose marginally after the report. Despite falling versus the US dollar on Tuesday, CAD is up for the second day in a row versus AUD and NZD.<\/p>\n\n\n\n
The USD\/CAD peaked during the American session at 1.3736 and it is hovering around 1.3730. It rose almost a hundred pips from the daily low.<\/p>\n\n\n\n
The pair was rejected from under the key support area of 1.3350. If the Loonie consolidates below, more losses seem likely. On the upside, USD\/CAD is testing a downtrend line, and above 1.3740, the upside could extend further.<\/p>\n","protected":false},"excerpt":{"rendered":"
The US dollar gains momentum as US yields surge ahead of FOMC decision. On the data front; Canada\u2019s CPI rose 0.4% in February, core up 0.5%. The USD\/CAD pair\u2019s support lies at 1.3650 with no change. The USD\/CAD pair bottomed at 1.3643 following the release of Canadian inflation data, the lowest since March 7 and …<\/p>\n","protected":false},"author":13,"featured_media":61436,"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":[10266,6885,8322,8143,7580,6984,7015],"class_list":["post-81810","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-canadian-cpi-data","tag-fed","tag-fomc-meeting","tag-interest-rate-hikes","tag-monetary-policy","tag-treasury-yields","tag-usd-cad"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/81810","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=81810"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/81810\/revisions"}],"predecessor-version":[{"id":81811,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/81810\/revisions\/81811"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/61436"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=81810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=81810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=81810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}