As the world’s best investment manager, I bring you the latest insights on the USD/CAD pair, currently holding firm above 1.3550. With the upcoming US Consumer Price Index (CPI) data and the presidential debate looming, investors are on high alert for potential market shifts.
The US Dollar (USD) is maintaining its strength, reflected in the US Dollar Index (DXY) hovering near recent highs. The focus is now on the presidential debate between Vice President Kamala Harris and former President Donald Trump, with implications for the November elections and USD performance.
Market expectations point to a slowdown in US annual headline CPI to 2.6%, with core inflation also showing a steady increase. These figures will play a crucial role in shaping speculation around Federal Reserve (Fed) interest rate decisions.
On the other hand, the Canadian Dollar (CAD) is under pressure as the Bank of Canada (BoC) is anticipated to further reduce interest rates in the coming months.
Technical analysis of the USD/CAD pair indicates a pullback towards the 20-day Exponential Moving Average (EMA) at 1.3570, signaling a bearish outlook in the short term. Resistance levels at 1.3590 and support levels at 1.3540 and 1.3500 are key areas to watch for potential trading opportunities.
For traders, a breakout above 1.3626 could lead to further upside towards 1.3687 and 1.3738 levels, while a retreat towards 1.3590 presents a selling opportunity.
Analysis Breakdown:
In summary, the USD/CAD pair is currently influenced by upcoming US CPI data and the presidential debate, with implications for market sentiment and currency performance. Investors should monitor key resistance and support levels for potential trading opportunities based on technical indicators and market dynamics.