USDCAD SIGNAL 15-04-22 : USDCAD Faces Downward Pressure Post Hawkish BoC Decision.

USDCAD moved lower following the BoC’s decision. Benchmark yields continued to rise as investors digest rising inflation and hope inflation begins to peak. Gold and silver prices remain a hedge against inflation amid rising inflation concerns.

USDCAD SIGNAL : Oil prices moved lower as supply concerns remain ambiguous. While there is a global tightening of supply due to the potential Russian oil shutdown, the EIA stated the plan for member states to release strategic reserves last week. 

US retail sales increased by 0.5% in March due to spiraling inflation and 6.9% y-o-y. Gas station sales led gains as retail sales are not adjusted for inflation. This contrasted with the 6.4% drop in online sales. 

Initial jobless claims rose to 185,000, increasing by 18,000 from last week. Although that export prices increased more than import prices, the US trade deficit has deteriorated. Inflation has hit imports as prices have increased by 2.6 % and 12.6% on a month-to-month basis.

USDCAD SIGNAL : The USD/CAD remains little changed as investors await key US data that will influence the dollar. The hawkish tone of the BoC underpinned the Loonie and limited losses, while softer crude oil prices undermined the Loonie and capped gains.

Resistance is seen near the 50-day moving average of 1.266. Support is seen near the 10-day moving average of 1.256. Short-term momentum turned positive as the fast stochastic had a crossover buy signal. Medium-term momentum is positive as the MACD line generated a crossover buy signal.

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