USD/CAD Expected to Reach 1.3430
The USD/CAD pair records a modest loss below the 1.3500 threshold during the early Asian trading hours on Friday. Currently, USD/CAD is traded at 1.3490, with a 0.03% loss for the day. Initial claims for unemployment benefits in the United States amount to 187,000 for the week ending January 13, the lowest level since September 24, 2022. The figure is better than the market expectation of 207,000, according to the Department of Labor on Thursday. Meanwhile, the Federal Reserve's Philadelphia Manufacturing Index for January came in at -10.6 compared to the previous -12.8. In response to the data, the US Dollar Index rises above 103.60 as investors expect the Federal Reserve (Fed) not to rush to reduce interest rates. In contrast to the recent robust growth in the United States, the Canadian economy is on the verge of entering a recession. Financial markets expect the Fed to cut rates as early as March, while the Bank of Canada (BoC) is expected to cut rates starting in April. Meanwhile, a rebound in oil prices due to fear of supply disruptions and geopolitical risk in the Middle East supports the commodity-linked Canadian Dollar. Additionally, the price has experienced a bull run with a target of 1.35, as anticipated. After reaching the liquidity zone, it seems to have started a bearish trend towards the 1.3430 zone. We will see if market sentiment and the chart configuration prove to be correct. Greetings to everyone from Nicola
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.