USD/CAD Advances To Near 1.3700 As US Dollar Remains Firmer -

USD/CAD Advances To Near 1.3700 As US Dollar Remains Firmer

May 10, 2024Jeremy ParkinsonFinance0

USD/CAD gains ground due to the expectations of the Fed keeping higher rates for longer.

US Treasury yields lost ground after the release of weak US Initial Jobless Claims on Thursday.

BoC Governor Tiff Macklem highlighted the resilience of the financial system following the release of the Financial Stability Report.

The USD/CAD pair edges higher to near 1.3690 during the Asian trading hours on Friday. The upward correction in the US Dollar (USD) supported the pair, which could be attributed to the hawkish sentiment surrounding the Federal Reserve (Fed) to keep higher interest rates for an extended period.However, the Greenback faced a challenge due to the lower US Treasury yields, which could be attributed to the weak US Initial Jobless Claims released on Thursday. The US Bureau of Labor Statistics (BLS) released data indicating that the number of individuals filing for unemployment benefits exceeded expectations. Initial Jobless Claims for the week ending May 3 rose to 231,000, surpassing estimates of 210,000 and showing an increase from the previous week’s reading of 209,000.Furthermore, the preliminary Michigan Consumer Sentiment Index for May is due on Friday, with forecasts indicating a slight decrease. This index is a survey that evaluates sentiment among US consumers, encompassing three primary areas: personal finances, business conditions, and buying conditions.On the Canadian side, the Bank of Canada (BoC) released its Financial System Review (FSR) on Thursday. BoC Governor Tiff Macklem emphasized that Canada’s financial system remains resilient. However, Macklem cautioned about potential volatility in global markets as expectations evolve regarding the extent and timing of rate cuts. He also noted that financial institutions still have adjustments to make to higher rates and potential shocks, which pose risks to financial stability.BoC Deputy Governor Carolyn Rogers additionally observed that while the number of small businesses reporting insolvencies has risen, the Bank of Canada (BoC) does not perceive this as having broader implications for the Canadian economy.The improved crude Oil prices may provide support for the Canadian Dollar (CAD) as Canada is the largest Oil exporter to the United States (US), limiting the advance of the USD/CAD pair. Western Texas Intermediate (WTI) Oil price trades around $79.40 on Friday. The black Gold edges higher amid optimism about rising demand in China and the US, the world’s two biggest crude-consuming nations.

USD/CAD

OVERVIEW Today last price 1.3688 Today Daily Change 0.0011 Today Daily Change % 0.08 Today daily open 1.3677

TRENDS Daily SMA20 1.372 Daily SMA50 1.362 Daily SMA100 1.3525 Daily SMA200 1.3562

LEVELS Previous Daily High 1.3738 Previous Daily Low 1.3675 Previous Weekly High 1.3785 Previous Weekly Low 1.361 Previous Monthly High 1.3846 Previous Monthly Low 1.3478 Daily Fibonacci 38.2% 1.3699 Daily Fibonacci 61.8% 1.3714 Daily Pivot Point S1 1.3655 Daily Pivot Point S2 1.3633 Daily Pivot Point S3 1.3592 Daily Pivot Point R1 1.3719 Daily Pivot Point R2 1.376 Daily Pivot Point R3 1.3782

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