Market Overview
The US Dollar’s recent growth is slowing down, even with strong US CPI and PPI reports. Markets have adjusted their expectations regarding interest rate cuts to align with the Fed’s outlook. More robust US data may be needed for an earlier pause in the Fed’s easing cycle to boost the Dollar further.
Long-term US yields are likely to rise, supporting the USD trend. Upcoming significant events in November include the release of October data and the US elections.
For the Canadian Dollar (CAD), there is a 48% chance of a 50 bps cut at the next meeting. Today’s Canadian CPI report will influence this; soft data may confirm the cut, while stronger figures could strengthen the CAD.
USDCAD Technical Analysis – Daily
USDCAD is currently trading above the key resistance level of 1.3785. Sellers aim to push the price below this level towards the 1.36 support, while buyers look to continue the upward trend towards 1.3860.
USDCAD Technical Analysis – 4 Hour
The 4-hour chart shows a significant rally with little pullback, under a steep upward trendline. Buyers are likely to stick to this trendline, while sellers are looking for a break below to target 1.36 support.
USDCAD Technical Analysis – 1 Hour
On the 1-hour chart, the recent price action highlights a steep trendline. Buyers will continue to test the trendline, while sellers will watch for a break. Today’s Canadian CPI report is critical; if the data is high, it could lead to a CAD rally.
Upcoming Events
This week has limited economic data, with the Canadian CPI report released today and US Retail Sales and Jobless Claims data due Thursday.
