Solid News

USDCAD Market Update

2/22/2023 11:08 AM

During the Asian session, the USD/CAD pair is developing the "bullish" momentum formed yesterday.

The positive dynamics of the US currency are developing against the backdrop of macroeconomic statistics on business activity indices for February: Service PMI increased from 46.8 points to 50.5 points, better than forecasts for growth to 47.2 points, Manufacturing PMI – from 46.9 points to 47.8 points, ahead of market expectations of 47.3 points. Composite PMI for the same period increased from 46.8 points to 50.2 points, while the forecast increased to 47.5 points.

Inflation statistics exerted moderate pressure on the positions of the Canadian currency: in January, the consumer price index slowed down from 6.3% to 5.9%, which was lower than analysts' forecasts of 6.1%. The index rose by 0.5% MoM after a correction of 0.6% and an expected increase of 0.7%. The core index fell from 5.4% to 5.0%, while analysts expected it to rise to 5.5%. Investors took the statistics on inflation in Canada as a signal for a possible softening of the "hawkish" monetary policy of the national regulator. It is likely that after another rate hike in March, the Bank of Canada will take a wait-and-see attitude.


On the daily chart, Bollinger Bands are steadily growing: the price range is expanding but not as fast as the "bullish" sentiment develops. The MACD indicator is growing, keeping a strong buy signal (the histogram is above the signal line). Stochastic is pointing upwards but is near its highs, indicating that the US dollar may become overbought in the ultra-short term.

Resistance levels: 1.3550, 1.3600, 1.3650, 1.3700. | Support levels: 1.3500, 1.3450, 1.3400, 1.3350.


Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392


Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using solidecn.com you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2023 SolidECN.com