USD/CAD Awaits the CPI Releases

FXOpen

The USD/CAD kicked off this week with the bearish sentiment. The yesterday’s trading session saw a dip from 1.1283 to 1.1219.

As of this writing, the pair is being traded around 1.1220. The market is in highly indecisive mode ahead of the important economic releases both by the Bank of Canada and the US Bureau of Labor Statistics. Both the Buyers and the sellers are extra-cautious and the price is lingering over the trend line support at 1.1214-1.1218. If the pair succeeds in breaking out this support, the next support lies at 1.1097, the 50% Fib level of the last leg from 1.0810 low to 1.1383 high.

uc new

On the upside, there lies a resistance around 1.1300, the psychological number. The bullish sentiment may remain intact as indicated by the trendline and the price is being traded above 50, 100 and 200 SMAs as well. 

Fundamental Analysis

The US and Canada both have important economic releases scheduled today that may significantly impact the market.

US Consumer Price Index (YoY)

The yearly CPI as released by the US Bureau of Labor Statistics is forecasted to be at 1.6% as compared to 1.7% in August. As an indicator of inflation, a high CPI reading is considered bullish while a low reading is considered bearish for the US dollar.

BOC Interest Rate

The Bank of Canada is due to announce the interest rate decision today. Along with this, it will also release the monetary policy statement as well as MPC report during the New York session. The interest rate is expected to remain unchanged at 1%. It will be bullish for the CAD if we see a hawkish statement from the BoC and vice versa. It would be interesting to know the impact on USD/CAD after the decision.

Trading Strategy

As per the technical and fundamental analysis, it is better to stay at sidelines ahead of the economic releases. Let the market get some clarity before opening any position.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodities and European currencies Test Key Supports EUR/USD Analysis: The Price Today Has Set Its Minimum Since the Beginning of March Market Analysis: GBP/USD Dives While USD/CAD Gains Bullish Pace The US Currency Corrects After Recent Growth USD/JPY Price Analysis: Consolidation ahead of US News

Latest articles

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold
Financial Market News

Weekly Market Wrap With Gary Thomson: NIKKEI-225, USD/JPY, GBP/USD, USD/CAD, Gold

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • NIKKEI-225 Analysis Indicates Possibility

Forex Analysis

Commodities and European currencies Test Key Supports

On the eve of the Easter holidays, the main currency pairs have slightly slowed down the development of the main trends and are consolidating near key ranges, the breakdown of which could provoke a change in the vectors of medium-term

Shares

Stock Market Analysis: NVDA Losing Leadership?

Since the start of the week, the S&P-500 Index (US500) is up about 0.58% while NVDA's share price is down about 3.8%. This is a worrying sign for Nvidia stock investors — could it be a sign

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.