Canadian Dollar Extends Gains Against A Softer US Dollar In Calm Trading Session -

Canadian Dollar Extends Gains Against A Softer US Dollar In Calm Trading Session

Mar 26, 2024Jeremy ParkinsonFinance0

Photo by Michelle Spollen on Unsplash
The Canadian Dollar (CAD) is showing a moderately positive tone on Tuesday, as the US Dollar keeps paring last week’s gains. A mild appetite for risk is dominating the market in a calm pre-Easter week. The echoes of the dovish monetary policy statement by the Federal Reserve last week are keeping US Dollar bulls in check with all eyes on Friday’s US Personal Consumption Expenditures (PCE) Prices Index data.The US calendar has shown mixed readings on Tuesday. US Durable Goods orders increased beyond expectations in February, while the unexpected contraction of the Conference Board’s Consumer Confidence Index has offset investors’ optimism.

These figures come after Fed speakers revealed the whole range of opinions regarding the bank’s monetary policy outlook. Chicago Fed President Goldsbee signaled three rate cuts, with a more hawkish Raphael Bostic hinting toward only one cut in 2024 and Fed Governor Lisa Cook defending a cautious approach.

Daily digest market movers: CAD extends recovery with US Dollar on defensive

The Canadian Dollar keeps trading higher on Tuesday, while the US Dollar loses ground.US Durable Goods orders increased at a 1.4% pace, beating expectations of a 1% increment.

Non-defense capital goods orders, a gauge for future business spending, increased 0.7% after a 0.4% decline in January.

The CB Consumer Confidence Index has dropped to 104.7 from 106.7 in February, against market expectations of an improvement to 107.00.

Futures markets keep betting on a nearly 65% chance that the Federal Reserve will start cutting rates in June, which is keeping the USD on its back foot.

The highlight of the week will be the US PCE Prices Index, the Fed’s inflation gauge of choice, which is expected to have accelerated at a 2.5% yearly pace in February, from 2.4% in the previous month.

The Core PCE Prices Index is expected to have risen at a 2.8% yearly pace and 0.4% on the monthly rate in February, from 2.8% and 0.3%, respectively, in January.

US Dollar price today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today.

US Dollar price this week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Swiss Franc.

USD EUR GBP CAD AUD JPY NZD CHF USD -0.16% -0.20% -0.27% -0.30% 0.15% -0.32% 0.67% EUR 0.18% -0.03% -0.09% -0.11% 0.31% -0.10% 0.84% GBP 0.22% 0.05% -0.04% -0.06% 0.36% -0.05% 0.88% CAD 0.26% 0.11% 0.07% -0.02% 0.41% 0.00% 0.93% AUD 0.31% 0.13% 0.11% 0.04% 0.43% -0.02% 0.97% JPY -0.13% -0.30% -0.23% -0.38% -0.41% -0.43% 0.55% NZD 0.27% 0.16% 0.11% 0.06% 0.03% 0.45% 0.98% CHF -0.65% -0.82% -0.88% -0.93% -0.95% -0.53% -0.94%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

Technical analysis: The US Dollar maintains its bullish trend intact
From a technical perspective, the USD/CAD’s broader bias remains positive, with the current Canadian Dollar recovery seen as a corrective reaction.
The pair remains trading within a rising channel after a rejection from the trendline resistance at 1.3615, which so far remains contained above the 38.2% Fibonacci retracement of the previous up leg at 1.3575.

USD/CAD 4-Hour Chart
The US Dollar has scope for further decline with investors awaiting Friday’s inflation data. Support levels at 1.3555 and the 1.3440-1.3460 area are likely to challenge bears. On the upside, resistance remains at 1.3610 and the 1.3700 level.More By This Author:Silver Price Analysis: XAG/USD Bears Need To Wait For Break Below 38.2% Fibo. Near $24.30 Gold Price Holds Steady Above $2,170 Level Amid Modest USD Weakness, Geopolitical Risks USD/JPY Alternates Gains With Losses Near 151.50