The Loonie fights to hold advances following the US Retail Sales report even the rate may consolidate over the remainder of the week as the Federal Open Market Committee (FOMC) Minutes emphasize a wait-and-see tactic for monetary policy.
The minutes from the January meeting suggests that the FOMC will depend on its present tools to support the US economy as “all participants supported maintaining the Committee’s current settings and outcome-based guidance for the federal funds rate and the pace of asset purchases,” and it seems as though the central bank will carry on the same script at its next interest rate decision on 17 of March as “the Committee’s guidance for asset purchases indicated that asset purchases would continue at least at the current pace until substantial further progress toward its employment and inflation goals had been achieved.”
Still the key market themes may continue to affect USDCAD pair as the US Dollar still reflects an inverse relationship with investor confidence, and the shake in retail sentiment also looks poised to persist as traders have been net-long the pair since May 2020.
The Loonie pair this morning keeps its stability above the breached resistance of the intraday bearish channel, noting that stochastic begins to overlap positively, waiting to motivate the price to resume the expected bullish trend for the upcoming period, which targets 1.275 level as the next price level. On the downside, we should note that breaking 1.2685 will put the price under the negative pressure again, to head towards testing 1.2590 areas initially. The expected trading range for today is between 1.2660 support and 1.2780 resistance.
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