Market news
24.05.2024, 08:21

USD/CAD falls toward 1.3700 as US Dollar offers gains ahead of economic data

  • USD/CAD halts its winning streak ahead of Canadian Retail Sales and US Consumer Sentiment due on Friday.
  • The US Dollar edges lower due to a downward correction in US Treasury yields.
  • Lower WTI price puts pressure on the commodity-link Canadian Dollar.

USD/CAD halts its four-day winning streak, trading around 1.3720 during the European session on Friday. However, the US Dollar (USD) advanced against the Canadian Dollar (CAD) during the earlier hours of the Asian market due to the emergence of the risk aversion sentiment. This could be attributed to the higher-than-expected Purchasing Managers Index (PMI) data released on Thursday from the United States (US). The data reinforced the hawkish sentiment surrounding the Federal Reserve (Fed) of maintaining higher policy rates for an extended period.

The S&P Global US Composite PMI rose to 54.4 in May from April's 51.3, marking the highest level since April 2022. The index exceeded market expectations of 51.1. The Service PMI surged to 54.8, indicating the biggest output growth in a year, while the Manufacturing PMI increased to 50.9.

Additionally, the latest Federal Open Market Committee (FOMC) Minutes suggested that Fed policymakers expressed concerns about the lack of progress on inflation, which was more persistent than expected at the start of 2024. Federal Reserve Bank of Atlanta President Raphael Bostic stated on Thursday that the inflation outlook might not improve as quickly as market participants are hoping for.

On the CAD front, declining crude Oil prices are exerting selling pressure on the commodity-linked Canadian Dollar (CAD), as Canada is the largest oil exporter to the United States. West Texas Intermediate (WTI) Oil prices have been falling for the fifth consecutive session, trading around $77.80 per barrel at the time of writing.

Higher-than-expected US PMI data and hawkish comments from Federal Reserve officials suggest a delay in the Fed’s rate cuts. Higher interest rates can negatively impact economic activities in the United States, the world's largest oil consumer, potentially reducing Oil demand.

Additionally, the expectation that the Bank of Canada (BoC) might cut interest rates before the US Federal Reserve could weigh on the Canadian Dollar, supporting the USD/CAD pair.

Investors expect Retail Sales data from Canada on Friday. On the US front, US Durable Goods Orders and the Michigan Consumer Sentiment Index will offer insight into economic conditions in the United States.

USD/CAD

Overview
Today last price 1.3723
Today Daily Change -0.0007
Today Daily Change % -0.05
Today daily open 1.373
 
Trends
Daily SMA20 1.3676
Daily SMA50 1.3647
Daily SMA100 1.3563
Daily SMA200 1.3572
 
Levels
Previous Daily High 1.3744
Previous Daily Low 1.3657
Previous Weekly High 1.3691
Previous Weekly Low 1.359
Previous Monthly High 1.3846
Previous Monthly Low 1.3478
Daily Fibonacci 38.2% 1.371
Daily Fibonacci 61.8% 1.369
Daily Pivot Point S1 1.3676
Daily Pivot Point S2 1.3623
Daily Pivot Point S3 1.359
Daily Pivot Point R1 1.3763
Daily Pivot Point R2 1.3797
Daily Pivot Point R3 1.385

 

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location