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USD/CAD still down for the week and pointing to the upside.
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US Dollar mixed on Friday between lower US yields and risk aversion.
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Key events for next week: Canada CPI (Tuesday) and FOMC meeting (Wednesday).
The USD/CAD printed a fresh daily high on Friday at 1.3772, amid a weaker Loonie and a mixed Greenback. After moving away from the bottom, the pair is about to post a small weekly loss.
The bad and the ugly
Data published on Friday shows that the price index of Canadian industrial products has dropped by 0.8%, a surprise considering the expectation of increasing the market by 1.6%. The price index of the raw material has dropped by 0.4%, the estimate below 0%. Economic statistics did not help Lunny, which is among the worst performers on Friday.
Next week, the original report of the Canadian economy will be the Consumer Price Index (CPI) on Tuesday. It is expected to show 0.4% mom increase, and the annual rate will be 5.5% to 5.5% in January.
The US dollar is mixed with Friday, Wall Street stocks are trying to recover as the loss deepens. The US yield has decreased by an average of 4%, 3.41% in 10-year, slightly above March to slightly above.
Markets are concerned with banking turmoil and the FOMC meeting next week. The consensus is still there to increase a 25bps rate but the completion of the tights cycle is seen sooner than the previous thought. The change in expectations rely on the greenback.
High, lower high
USD/CAD is creating high lower and lower height in the last session. On Friday, it jumps in 1.3676 to the opposite from the minimum of two days to 1.3763. Short -term aspects are not clear.
This pair is above the 20-day simple moving average (1.3655) and above the 1.3660/70 key support area. When supporting the two above, the Outlook looks structural for USD/CAD.
USD/CAD 4-hour chart
Technical levels
USD/CAD
