USD/CAD Exchange Rate Prediction – The Dollar Consolidates after a Strong Week
The USD/CAD eased on Friday but finished the week up 1.3%. Strong dollar gains came in the wake of higher than expected inflation figures. On Friday, the U.S. Commerce Department report stronger than expected U.S. retail sales which will feed into GDP growth. The dollar was broadly mixed against most major currencies. U.S. yields were slightly higher but remain under pressure following Fed Chair Powells testimony this week which shows that Fed is steadfast about keeping rates unchanged, despite rising inflation expectations.
The USD/CAD consolidated on Friday after hitting a 3-month high Thursday. The currency pair is poised to test resistance near the April highs at 1.2658. Support is seen near the 20-day moving average at 1.2418. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. The exchange rate is overbought. The current…