Last Updated: Oct 10, 2024 03:12:28 PM (GMT)
USD/CAD: The current market price is 1.3654, reflecting a 0.87% increase from the previous close. Today's high-impact economic events, such as Initial Jobless Claims, are anticipated to provide mixed insights, with forecasts predicting a drop in claims from 225.0 to 227.0.
Support and Resistance Levels The support levels are at 1.3570, 1.3550, and 1.3535, while the resistance levels are at 1.3690, 1.3710, and 1.3720. The pivot point is at 1.3625.
Indicators The RSI is currently at 75.35, indicating overbought conditions. The ADX is strong at 60.50, suggesting a robust trend. The Parabolic SAR confirms bullish momentum with recent values below the price. The 50-day SMA is at 1.3602, supporting upward movement during volatilities.
Market Sentiment Anticipating a bullish scenario as the price is above pivot 1.3625, supported by strong indicators and trends.
USD/CAD Signals & Technical Analysis
Market Sentiment
Trend Indicators
Oscillators
Moving Averages
Pivot
About the USD/CAD (U.S. Dollar/Canadian Dollar)
Breaking Down ‘USD/CAD’
The Canadian dollar is currently the sixth most traded currency in the world, with USD/CAD accounting for over 5% of forex trading volume. The pair is primarily driven by crude oil prices, as the Canadian economy relies heavily on oil production, being the world's fourth largest exporter of crude oil. Canada has vast oil reserves, second only to Saudi Arabia, and is a key oil exporter to the United States, accounting for 56% of all crude oil imports into the U.S. As an estimate, 3.8m barrels a day cross the border.The price of crude oil acts as a leading indicator for where USD/CAD is likely to head. When oil prices rise, USD/CAD falls because the value of the Canadian dollar appreciates. However, this isn’t the only factor that influences the price. The strength of the respective country's economy and interest rates can also increase demand for either currency.What Determines the USD/CAD Exchange Rate?
There are two main factors that determine the USD/CAD exchange rate: Bank of Canada and U.S. Federal Reserve Monetary Policy: The Bank of Canada and Federal Reserve control the supply of money in the market to keep the economy on track. A dovish policy, also known as expansionary policy, weakens the currency as the monetary supply increases. In contrast, a hawkish monetary policy (contractionary policy) strengthens the currency as central banks increase interest rates, contracting the monetary supply.Oil Prices:
As mentioned, crude oil is a massive part of the Canadian economy. But it’s also vital to the American economy, meaning that rising oil prices are bad for the U.S. economy and good for the Canadian economy.Higher oil prices also mean that Canada earns more for its oil, as American dollars flow out of the U.S. and into Canada, which further increases the value of the Canadian dollar.Other USD/CAD Price Factors
These aren’t the only factors, however. There are others, such as:Economic Events:
Any movement in the U.S. and Canadian economic events determines the exchange rates. Top-of-the-line economic events include:- Gross Domestic Product (GDP)
- Employment data, like Unemployment Rates and Non-Farm Payrolls (U.S. only)
- Industrial Output data
- Consumer Price Index (CPI) and Producer Price Index (PPI)
- Export and International Trade data, particularly in Canada