USD / CAD higher for fifth consecutive day
USD / CAD is up for the fifth consecutive day in forex, trading at 1.2831 during the New York session, as the Federal Reserve begins its final monetary policy meeting of 2021. Market mood Financials is at risk or perhaps cautious as investors wait if the Fed would decline faster than expected, while money market futures anticipate three rate hikes from the U.S. central bank by the end of 2022.
- Ls USD / CAD up 0.08%, as final Federal Reserve meeting approaches.
- Falling crude oil prices weighed on the Canadian dollar tied to commodities amid a lackluster Forex trading session.
- USD / CAD Technical Outlook: Has a bullish bias, and a break above 1.2850 would expose the current year high around 1.2940s.
Meanwhile, European stocks are falling, with the exception of the FTSE 100, while US stock indexes are falling between 0.03% and 0.48% pond-wide as Wall Street opens.
Falling crude oil prices and rising US PPI weigh on the Canadian dollar
In the commodities complex, the Western Texas Intermediate (WTI), which is linked to the loonie, is down 1.11% to $ 70.50 USD and weighs on the Canadian dollar, after OPEC + pulls away stuck to its forecast for an increase of 1.11 million barrels for 2022 in the middle of a fourth quarter. wave of COVID-19 infections around the world.
On the macroeconomic record, the US Department of Labor reported that the Producer Price Index (PPI) for November rose nearly 10% annually, more than the estimated 9.2%. Core PPI, excluding volatiles like food and energy, increased 7.7%, above the 7.2% forecast by analysts.
This reading would put the Federal Reserve under pressure, as this is the highest figure since 2010. According to the report, some companies have passed these additional costs on to their customers through higher prices, and this report suggests increases. additional in the coming months.
That said, the USD / CAD could reverse all of its forex losses from December 2020, when it started declining from 1.2956, to the current year low of 1.2006, so that the Fed considers the end of the easy money cycle, after the rise in consumer prices in the United States. the most since 1982, as reported on Friday of last week.
USD/CAD : perspectives techniques
The daily chart USD / CAD shows that the pair has recovered most of its losses and has a bullish bias, confirmed by the daily moving averages lying well below the spot price. As of going to press, the pair is approaching strong resistance around 1.2850, which if broken could send USD / CAD towards the year high at 1.2948, followed by a test of December 21, 2020, the cycle high at 1.2956.
On the flip side, a failure at 1.2850 would form a double-top pattern that could drop the USD / CAD pair towards the December 8 low at 1.2605, followed by the 100-day moving average at 1.2583. , then the 50-day moving average at 1.2546.
Par Christian Borjon Valencia, FXStreet
Christian Borjon, Forex News Editor at FX Street, has been an experienced trader for six years in Forex and CFD commodities. He worked at CITI Banamex (CITI branch in Mexico) as a Forex Market Maker for a year and a half. Christian holds a UA Business Administration degree from C, Mexico. Like many other traders, he started taking a course and learning the hard way. Christian later discovered it and became obsessed with fundamental analysis and macroeconomics, as well as its influence on financial markets.
The opinions expressed here are those of the author alone and do not necessarily reflect the views of Forex Quebec. Every investment and trading move comes with risk, you should do your own research when making a decision.
Disclaimer: The information and opinions contained in this report are provided for general information only and do not constitute an offer or a solicitation to buy or sell currency contracts or CFDs. Although the information contained in this document has been taken from sources believed to be reliable, the author does not guarantee its accuracy or completeness, and assumes no responsibility for any direct, indirect or consequential damages that may arise from the fact that someone relies on such information.