Published on May 18, 2023

Daily Analysis For USD/CAD 18-05-2023

USD/CAD Analysis

Economic Events and Scenario for USD/CAD

Economic Events : -

GMT	Event	Impact	Currency
00:50	(Japan) Foreign Bond Investment	Low	JPY
00:50	(Japan) Stock Investment by Foreigners	Low	JPY
00:50	(Japan) Imports YoY	Low	JPY
00:50	(Japan) Exports YoY	Medium	JPY
00:50	(Japan) Balance of Trade	High	JPY
01:00	(Austria) Ascension Day	None	EUR
01:00	(Belgium) Ascension Day	None	EUR
01:00	(Euro Area) Ascension Day	None	EUR
01:00	(Finland) Ascension Day	None	EUR
01:00	(France) Ascension Day	None	EUR
01:00	(Germany) Ascension Day	None	EUR
01:00	(Luxembourg) Ascension Day	None	EUR
01:00	(Netherlands) Ascension Day	None	EUR
01:00	(Switzerland) Ascension Day	None	CHF
02:30	(Australia) Part Time Employment Chg	Medium	AUD
02:30	(Australia) Participation Rate	Low	AUD
02:30	(Australia) Full Time Employment Chg	Medium	AUD
02:30	(Australia) Unemployment Rate	High	AUD
02:30	(Australia) Employment Change	High	AUD
04:00	(East Timor) Inflation Rate YoY	Low	USD
04:00	(East Timor) Inflation Rate MoM	Low	USD
04:35	(Japan) 52-Week Bill Auction	Low	JPY
07:30	(Euro Area) ECB Guindos Speech	High	EUR
09:00	(Spain) Balance of Trade	Medium	EUR
09:40	(Spain) Obligacion Auction	Low	EUR
09:40	(Spain) 5-Year Bonos Auction	Low	EUR
10:00	(Euro Area) ECB President Lagarde Speech	Medium	EUR
11:00	(Portugal) PPI MoM	Low	EUR
11:00	(Portugal) PPI YoY	Low	EUR
11:00	(Slovakia) Unemployment Rate	Low	EUR
11:30	(Portugal) Private Consumption YoY	Low	EUR
11:30	(Portugal) Economic Activity YoY	Low	EUR
13:30	(United States) Philadelphia Fed Manufacturing Index	Medium	USD
13:30	(United States) Philly Fed Business Conditions	Low	USD
13:30	(United States) Philly Fed CAPEX Index	Low	USD
13:30	(United States) Philly Fed Employment	Low	USD
13:30	(United States) Philly Fed New Orders	Low	USD
13:30	(United States) Philly Fed Prices Paid	Low	USD
13:30	(United States) Initial Jobless Claims	High	USD
13:30	(United States) Jobless Claims 4-week Average	High	USD
13:30	(United States) Continuing Jobless Claims	High	USD
13:30	(Canada) New Housing Price Index YoY	Medium	CAD
13:30	(Canada) New Housing Price Index MoM	Medium	CAD
14:05	(United States) Fed Jefferson Speech	Medium	USD
14:30	(United States) Fed Barr Testimony	Medium	USD
15:00	(United States) Existing Home Sales MoM	High	USD
15:00	(United States) Existing Home Sales	High	USD
15:00	(United States) CB Leading Index MoM	Low	USD
15:00	(United States) Fed Logan Speech	Medium	USD
15:30	(United States) EIA Natural Gas Stocks Change	Low	USD
16:30	(United States) 8-Week Bill Auction	Low	USD
16:30	(United States) 4-Week Bill Auction	Low	USD
18:00	(United States) 10-Year TIPS Auction	Low	USD
20:00	(El Salvador) Balance of Trade	Low	USD
23:45	(New Zealand) Balance of Trade	Medium	NZD
23:45	(New Zealand) Exports	Low	NZD
23:45	(New Zealand) Imports	Low	NZD

Today's Scenario: - Heading into Thursday's European session, the USD/CAD pair is fluctuating near the intraday high of around 1.3470-75. Buyers of the Canadian dollar (Loonie) are being encouraged by the recent decline in oil prices and the strong performance of the US dollar, which is trading at multi-day highs. The overall market sentiment, however, remains sluggish.

Buy Scenario: - The USD/CAD pair retreated from its session highs as oil prices experienced an upward movement. WTI oil gained momentum following the release of the EIA report, which revealed a decrease in domestic oil production from 12.3 million barrels per day (bpd) to 12.2 million bpd.

If the USD/CAD pair settles below the support level at 1.3450, it is likely to move towards the next support level at 1.3410. Till we do not advise to buy USD/CAD.

Sell Scenario: - On the upside, a breakthrough above the resistance level at 1.3490 would pave the way for a test of the resistance at 1.3530. Till we do not advise to sell USD/CAD.

Support and Resistance Level: -