USD/CAD under pressure near 1.3700 as USD struggles to gain a foothold

  • USD/CAD remains bid near 1.3700 as the US Dollar struggles to hold above 105.00.
  • Weak US data and less hawkish comments from the Fed's Williams have weighed on the US dollar.
  • Canadian employers are expected to have hired 20,000 job seekers in April.

The USD/CAD pair is constantly facing pressure near the round resistance level of 1.3700. The Canadian Dollar is moving around 1.3680 due to the absence of top-level economic data from the United States this week. In Canada, investors will focus on April employment data, due out on Friday.

Therefore, speculation on the outlook for interest rates from the Federal Reserve (Fed) and the Bank of Canada (BoC) will guide the movement of the Canadian dollar asset.

Market sentiment is slightly bullish amid strong speculation that the Fed will begin lowering interest rates from their current level at its September meeting. The S&P 500 opens on a cautiously positive note, suggesting improving investor risk appetite. The US 10-year Treasury yield has fallen to 4.45% as the Fed's easing of the Fed's tightening stance on interest rates is an unfavorable condition for low-interest rate assets.

The US Dollar Index (DXY) struggles to hold above 105.00 as weak Non-Farm Payrolls (NFP) and poor April services PMI data have raised expectations that the Fed will begin cutting rates of interest starting in September. Weak US data has raised concerns about the country's economic outlook, which investors had anticipated as strong due to optimistic GDP growth.

On the other hand, less hawkish comments from Fed officials have also affected the US dollar. On Monday, New York Fed President John Williams said the central bank's next move will be a rate cut.

As for the Canadian Dollar, investors await employment data that will influence expectations of rate cuts by the BoC, currently anticipated for the June meeting. Statistics Canada is expected to report an increase in payroll numbers of 20,000, up from a decrease of 2,200 in March. The unemployment rate is estimated to rise to 6.2%, up from 6.1% previously. Investors will especially focus on the annual average hourly wage data which will indicate wage growth, which indicates the outlook for inflation.

USD/CAD

Overview
Latest price today 1.3677
Today's daily change 0.0011
Today's daily change 0.08
Today's daily opening 1.3666
Trends
SMA20 daily 1.3711
50 daily SMA 1.3611
SMA100 daily 1.3513
SMA200 Journal 1.3556
Levels
Previous daily high 1.3697
Previous daily low 1.3648
Previous weekly high 1.3785
Previous weekly low 1,361
Previous Monthly High 1.3846
Previous monthly low 1.3478
Daily Fibonacci 38.2 1.3667
Fibonacci 61.8% daily 1.3678
Daily Pivot Point S1 1.3644
Daily Pivot Point S2 1.3621
Daily Pivot Point S3 1.3594
Daily Pivot Point R1 1.3693
Daily Pivot Point R2 1,372
Daily Pivot Point R3 1.3742

Source: Fx Street

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