USD/CAD: Short Momentum, price will grow. ✅
USD/CAD reverses Friday's corrective decline from a 1.5-month high, rising 0.08% intraday near 1.3490 during the five-day rally to early Monday.
The Loonie pair's recent advances could be attributed to lower prices for Canada's primary export item, WTI Crude Oil, as well as the market's risk-off mindset, which supports US Dollar demand. It should be noted, however, that the vacation in the United States and Canada limits immediate swings in the currency during a sluggish Asian session.
WTI crude oil, on the other hand, prints a six-day downtrend near $76.50 as the US Dollar strengthens alongside an increase in US crude oil stockpiles and mounting fears of quicker Fed rate hikes.
In other news, Japanese Prime Minister (PM) Fumio Kishida has called for an emergency United Nations (UN) Security Council meeting in response to North Korea's firing of two ballistic missiles towards Tokyo, both of which landed outside Japan's exclusive economic zone (EEZ). On the same vein, the failure of the most recent meeting between US Secretary of State Antony Blinken and China's top diplomat Wang Yi to reestablish US-China relations. The explanation could be linked to comments made by a Chinese envoy that the US must alter course and repair the harm done to Sino-US relations by indiscriminate use of force. On the same topic, US Ambassador to the United Nations Linda Thomas-Greenfield stated on Sunday that China would cross a "red line" if it opted to supply Russia with lethal military aid for its invasion of Ukraine.
Concerning central banks, better-than-expected readings of the US Consumer Price Index (CPI) and Retail Sales, together with previously reported upbeat readings of employment and output data, aided the Federal Reserve (Fed) officials in remaining hawkish. On the other hand, Bank of Canada (BoC) policymakers indicated a willingness to delay rate hikes due to the negative repercussions for the economy.
Against this backdrop, the S&P 500 Futures show minor losses, despite Wall Street finishing neutral. It's worth mentioning that in the last week, US 10-year Treasury bond rates surged to their highest levels since early November, assisting the DXY to print a three-week rise.
Moving on, a light schedule and off in the US and Canada may limit quick swings ahead of the BoC CPI on Tuesday and the Federal Open Market Committee (FOMC) Meeting Minutes on Wednesday. If Fed policymakers stay hawkish and Canada's inflation rate decreases, the USD/CAD could rise further.
The Loonie pair's recent advances could be attributed to lower prices for Canada's primary export item, WTI Crude Oil, as well as the market's risk-off mindset, which supports US Dollar demand. It should be noted, however, that the vacation in the United States and Canada limits immediate swings in the currency during a sluggish Asian session.
WTI crude oil, on the other hand, prints a six-day downtrend near $76.50 as the US Dollar strengthens alongside an increase in US crude oil stockpiles and mounting fears of quicker Fed rate hikes.
In other news, Japanese Prime Minister (PM) Fumio Kishida has called for an emergency United Nations (UN) Security Council meeting in response to North Korea's firing of two ballistic missiles towards Tokyo, both of which landed outside Japan's exclusive economic zone (EEZ). On the same vein, the failure of the most recent meeting between US Secretary of State Antony Blinken and China's top diplomat Wang Yi to reestablish US-China relations. The explanation could be linked to comments made by a Chinese envoy that the US must alter course and repair the harm done to Sino-US relations by indiscriminate use of force. On the same topic, US Ambassador to the United Nations Linda Thomas-Greenfield stated on Sunday that China would cross a "red line" if it opted to supply Russia with lethal military aid for its invasion of Ukraine.
Concerning central banks, better-than-expected readings of the US Consumer Price Index (CPI) and Retail Sales, together with previously reported upbeat readings of employment and output data, aided the Federal Reserve (Fed) officials in remaining hawkish. On the other hand, Bank of Canada (BoC) policymakers indicated a willingness to delay rate hikes due to the negative repercussions for the economy.
Against this backdrop, the S&P 500 Futures show minor losses, despite Wall Street finishing neutral. It's worth mentioning that in the last week, US 10-year Treasury bond rates surged to their highest levels since early November, assisting the DXY to print a three-week rise.
Moving on, a light schedule and off in the US and Canada may limit quick swings ahead of the BoC CPI on Tuesday and the Federal Open Market Committee (FOMC) Meeting Minutes on Wednesday. If Fed policymakers stay hawkish and Canada's inflation rate decreases, the USD/CAD could rise further.
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