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FOREX: USDCAD Briefly Rises to Highest Level Since 2020

FOREX
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  • The Canadian dollar has relatively outperformed its G10 counterparts amid the greenback surge in recent weeks, owing to the closer relationship between US and Canadian rates and potentially given the short-term trendline breaks & resulting weakness for the likes of EURCAD and GBPCAD in recent sessions.
  • However, the persistence of greenback strength in the aftermath of the moderately softer US CPI report did prompt USDCAD to rise above the 2022 highs of 1.3977, briefly printing a new four and half year high of 1.3999.
  • Today’s appreciation represents a breach of a key medium term resistance point, and while the psychological 1.4000 level has capped gains so far, further topside momentum would place attention on 1.4034, the 1.00 projection of the Oct 17 - Nov 1 - 6 price swing and then 1.4188, 2.0% 10-dma envelope.
  • The domestic calendar remains light this week, with eyes on next Tuesday’s October inflation report as the next important input for the Bank of Canada.
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  • The Canadian dollar has relatively outperformed its G10 counterparts amid the greenback surge in recent weeks, owing to the closer relationship between US and Canadian rates and potentially given the short-term trendline breaks & resulting weakness for the likes of EURCAD and GBPCAD in recent sessions.
  • However, the persistence of greenback strength in the aftermath of the moderately softer US CPI report did prompt USDCAD to rise above the 2022 highs of 1.3977, briefly printing a new four and half year high of 1.3999.
  • Today’s appreciation represents a breach of a key medium term resistance point, and while the psychological 1.4000 level has capped gains so far, further topside momentum would place attention on 1.4034, the 1.00 projection of the Oct 17 - Nov 1 - 6 price swing and then 1.4188, 2.0% 10-dma envelope.
  • The domestic calendar remains light this week, with eyes on next Tuesday’s October inflation report as the next important input for the Bank of Canada.