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The data added to the Canadian Dollar’s selloff as they downplayed risks for further tightening from the BoC

The data added to the Canadian Dollar’s selloff as they downplayed risks for further tightening from the BoC| FXMAG.COM
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  1. This week's data have proven very interesting as they back the BoC scenario for pausing its policy tightening
    1. US dollar against Canadian dollar - next resistance area stands at 1.3540-1.3570

      Crude oil related loonie has weakened recently and two crucial macro events take place on Tuesday. We asked HF Markets' analyst what does she expect from Canadian dollar this week.

      the data added to the canadian dollar s selloff as they downplayed risks for further tightening from the boc grafika numer 1the data added to the canadian dollar s selloff as they downplayed risks for further tightening from the boc grafika numer 1

      This week's data have proven very interesting as they back the BoC scenario for pausing its policy tightening

      Andria Pichidi (Market Analyst at HF Markets): The BoC announced a pause in rate hikes at its January policy meeting, while the hot January and December employment reports gave rise to fears that the Bank will have to resume rate hikes. However this week's data have proven very interesting as they back the BoC scenario for pausing its policy tightening.

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      US dollar against Canadian dollar - next resistance area stands at 1.3540-1.3570

      Inflation is down +0.5% m/m vs +0.7% expected and headline core 5.0% y/y vs 5.5% expected. CPI is down on a y/y basis, slipping to 6.3% in December and has decelerated from the 8.1% y/y in June which was the fastest since 1983. Also, retail sales popped 0.5% in January. The data added to the Canadian Dollar’s selloff as they downplayed risks for further tightening from the BoC. The rates market was pricing in a 25% chance of a Bank of Canada hike on March 8.  USDCAD rose to 1.3500 from 1.3455 after the report. Next Resistance area stands at 1.3540-1.3570.


      Andria Pichidi

      Andria Pichidi

      Having completed her five-year-long studies in the UK, Andria Pichidi has been awarded a BSc in Mathematics and Physics from the University of Bath and a MSc degree in Mathematics, while she holds a postgraduate diploma (PGdip) in Actuarial Science from the University of Leicester.

      Following her various academic endeavors, Andria set eyes on the fascinating Forex industry where she has obtained valuable experiences after being active in the field for the past few years. In 2016, she joined HFM as a Market Analyst with a mission to actively support the company’s clients in becoming better traders, by delivering daily market reviews.

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