USD Consolidates As Trading Session Comes to Close For The Week
USD saw an upward gain during Thursday’s trading session post bank of Canada’s decision to keep interest rates unchanged. This uptrend momentum slowed down as American market hour came to an end and has since attained stability on the upper levels of yesterday’s gain. USDCAD has since maintained a range bound performance across Asian market hours as traders remain attentive and cautious ahead of Core CPI and Core Retail Sales data which is scheduled to be released later today.
USDCAD Gains
USDCAD is currently trading in a range of 1.264 to 1.267 with 0.79% increase in value. The headline figures will be watched closely by CAD traders, as the Bank of Canada (BOC) struck a notably dovish tone following their latest Rate Decision that saw the central bank hold steady on rates, and a miss for CPI and sales figures could push out expectations of a rate increase. Current Forecast data for Core CPI for March expected at 1.5% while Core Retail Sales reading is expected at 0.3%.
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Looking at the charts we can see that USDCAD has maintained bullish performance for two trading session. We are currently post mid-month and economic calendar doesn’t have much in store for Canada in days to come. As trading proceeds into next week some of the major factors to lookout for that could possibly lead to USD gaining upper hand would include data such as CB consume confidence, New home sales data & existing home sales data and core durable goods orders.
When taking technical analysis into consideration, Stochastic indicator which is used to calculate the momentum of an instrument is standing in positive area with the signal line moving upwards well inside overbought supportive of bullish stance for US dollar. Should the pair manage to strengthen its positive momentum support and resistance values for short term can be expected in range of 1.245 & 1.275 respectively.