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Instrument: USDCAD
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 1.26944 with take profit at 1.27123
Bearish Preference:
Sell position is envisaged if price trades below 1.26288 with take profit at 1.25959
Fundamentals:
3 PM CB Consumer Confidence
Comment:
The Canadian dollar rose to its highest level in more than five-weeks against the greenback on Monday, as data showed Canada’s current account surplus turning positive and ahead of an expected interest rate hike this week by the Bank of Canada. Canada’s current account surplus was C$5.0 billion in the first quarter, swinging from a revised C$137 million deficit in the fourth quarter. It was the widest surplus since the second quarter of 2008. “We expect the ongoing strength in commodities to support the current account in Q2 (second quarter), though offset by a deeper services deficit as travel recovers more fully,” said Shelly Kaushik, an economist at BMO Capital Markets. Canada’s GDP data, due on Tuesday, could help guide expectations for the Bank of Canada policy outlook. Money markets expect the central bank to raise its benchmark rate by half a percentage point for a second straight time at a policy decision on Wednesday.
Analysis: SCRUM Team
