USDCAD rises 0.21% to 1.38980 despite lack of economic data

USDCAD Analysis

Upcoming key events (GMT+8)

What happened lately

On Monday, the USDCAD currency pair experienced a modest increase of 0.21%, closing at 1.38980. The trading session saw the pair reach a high of 1.39290 and a low of 1.38550. This upward movement occurred despite the lack of significant economic data releases that could directly explain the price action.

The only notable economic release from the previous trading day was the Canadian Consumer Price Index (CPI) inflation rate, which remained steady at 3% on a 12-month basis. This figure was unchanged from the previous period, indicating stable inflationary pressures in Canada.

Looking ahead, several high-impact economic events are scheduled that could influence the USDCAD pair. On Wednesday at 08:30 PM GMT+8, the United States will release its Monthly Retail Trade data, which is expected to have a significant impact on the market. Additionally, on Thursday at 02:00 AM GMT+8, the Federal Reserve will announce its Interest Rate Decision and provide Interest Rate Projections. These events are likely to be closely watched by market participants for any indications of future monetary policy direction.

Overall, the market sentiment surrounding the USDCAD pair appears to be cautious, with traders likely positioning themselves ahead of the upcoming U.S. economic data and Federal Reserve announcements. The stable Canadian inflation rate suggests that domestic economic conditions remain steady, but the focus will likely shift to the U.S. developments in the coming days.

What can we expect from USDCAD today?

The USDCAD pair closed with a modest gain of 0.21% on Monday, ending the day at 1.38980. The daily outlook remains bullish, supported by the price trading above the 9-day EMA.

Key levels to watch out: