USD/CAD holds below the 1.3600 barrier, eyes on BoC rate decision
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USD/CAD holds below the 1.3600 barrier, eyes on BoC rate decision

  • USD/CAD remains flat around 1.3575 in Tuesday’s early Asian session. 
  • Fed’s Bostic said there’s no urgency to cut interest rates given the US economy's strength. 
  • The BoC is expected to hold rates at 5% at its June meeting on Wednesday.

The USD/CAD pair holds below the 1.3600 barrier during the early Asian trading hours on Tuesday. The Bank of Canada (BoC) will announce the interest rate decision on Wednesday, with no change in rate expected. Meanwhile, the decline in oil prices weighs on the Loonie and provides some support to the USD/CAD pair. At press time, the pair is trading at 1.3575, unchanged for the day. 

The Federal Reserve (Fed) is expected to maintain the benchmark interest rate in the 5.25% to 5.5% range at its March meeting. The financial market has priced in the first rate cuts in June, but this might change if inflation stalls or wages continue to beat forecasts. Fed President Raphael Bostic said on Monday that the central bank is under no urgent pressure to cut interest rates given a prospering economy and job market. 

On the other hand, the Bank of Canada (BoC) is widely expected to hold its key interest rate at 5.0% on Wednesday. Investors have priced an 80% odd that the first rate cut to come in around June. The press conference might offer some hints about the timing of rate cuts. Dovish remarks from the BoC governor could exert some selling pressure on the Canadian Dollar (CAD). 

Market players will focus on the US ISM Services PMI, which is estimated to ease from 53.4 in January to 53.0 in February. Later this week, Fed Chairman Jerome Powell’s Senate testimony will be a closely watched event ahead of the US Nonfarm Payrolls (NFP) on Friday. 



Today last price 1.3578
Today Daily Change 0.0002
Today Daily Change % 0.01
Today daily open 1.3576
Daily SMA20 1.351
Daily SMA50 1.3442
Daily SMA100 1.3538
Daily SMA200 1.3478
Previous Daily High 1.3584
Previous Daily Low 1.3546
Previous Weekly High 1.3606
Previous Weekly Low 1.3484
Previous Monthly High 1.3606
Previous Monthly Low 1.3366
Daily Fibonacci 38.2% 1.3569
Daily Fibonacci 61.8% 1.356
Daily Pivot Point S1 1.3553
Daily Pivot Point S2 1.353
Daily Pivot Point S3 1.3515
Daily Pivot Point R1 1.3591
Daily Pivot Point R2 1.3607
Daily Pivot Point R3 1.363