USD/CAD Daily Price Forecast – Solid Chinese Oil Demand Pushed The Loonie Downwards Ahead Of CPI Data

The USD/CAD may find a way to recover previous losses post-release of the bearish-expected Canadian CPI Core data. The Major 200-day SMA stood above the pair inviting more loonie bears.
Nikhil Khandelwal
Canadian Dollar Notes 1

The Loonie extended yesterday’s plunge rally into today’s session touching the lowest vicinity near 1.3307 levels. At 08:15 GMT, the USD/CAD was already 0.29 percent down the day. The growing crude oil prices seem to contribute to the significant fall portion for the commodity-linked loonie.

Oil prices upsurged over substantial demands arising from the Chinese Refineries, who form the world’s second-largest crude consumers. Along with this immediate demand, OPEC-led supply continued to maintain pressures on the commodity. In the meanwhile, investors went innerved over lower-than-expected US Oil Inventories.

The rising Crude West Texas Intermediate (WTI) Futures, in the interim, failed to breach the solid resistance line of $64.55 per barrel. However, the crude remained sustained in the range of $64.41 per barrel and $64.55 per barrel.

Key USD/CAD Impacting Events:

12:30 GMT

The Bank of Canada will issue the following March indexes:

  • Core Consumer Price Index (YoY): The index eliminates eight volatile items such as fruits, vegetables, gasoline, fuel oil, natural gas, mortgage interest, intercity transportation, and tobacco products. This time the analyst are expecting 1.3 percent than the previous 1.5 percent.
  • Consumer Price Index (MoM): The market experts remain in-line to the previous MoM with 0.7 percent.

The Stats Canada will broadcast the following Consumer Price Index (CPI):

  • CPI Core (MoM): Items with high volatility such as food, energy, alcohol, and tobacco gets excluded. The consensus estimates remain aligned with the previous 0.2 percent.
  • CPI (Both YoY & MoM): The analyst expects the MoM to appear in the same range that of previous 0.7 percent while they are bullish with YoY to come near 1.9 percent.

12:30 GMT

The Trade Balance is a useful tool in scaling USD. The Bureau of Economic Analysis and the U.S. Census Bureau will broadcast it. The analysts expect a negative $53.7 billion than the previous negative $51.1 billion.

Technical Analysis

USDCAD 60 Min 17 April 2019

Since the opening of this month, the USD/CAD remained subdued within the range of 1.3298 and 1.3404 levels. Today, the pair had attempted to break the lower boundary of the Bollinger Bands showing heavy selling pressure among the investors. And, the pair hardly went above the center line of the Bollinger bands confirming a strong downtrend. Adding to this, the significant 100-day SMA and 200-day SMA stood above the USD/CAD inviting more bears.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US