USD/CAD hovers at 1.4110 as hawkish Fed rhetoric offsets technical pressure from a descending channel, with the pair supported by key moving averages.
Fed officials Barkin and Goolsbee signalled persistent core CPI inflation, especially in services, with justification for future hikes, and Rabobank notes a more hawkish lilt across the FOMC. The FXS Fed Sentiment Index staying elevated reinforces a constructive backdrop for the dollar against major peers.
The pair trades around 1.4110 on November 10 after two days of losses but stays above the nine-day EMA at 1.4062 and 50-day EMA at 1.4056, with RSI near 56 signalling positive momentum. Hawkish Fed rhetoric from Barkin and Goolsbee on persistent services CPI inflation supports the dollar. A bearish daily descending channel caps upside near 1.4140, limiting conviction.
The USD/CAD pair trades near 1.4110 on November 10, marking its second consecutive day of losses. Despite the pullback, the pair maintains a bullish near-term bias by holding above the nine-day EMA of 1.4062 and the 50-day EMA of 1.4056. Support for the US Dollar is bolstered by hawkish comments from Fed officials Thomas Barkin and Austan Goolsbee regarding persistent core services inflation.
Yes, Fed speakers Barkin and Goolsbee stressed persistent core services inflation and justification for future hikes, which aligns with a more hawkish FOMC tone and supports the dollar.
Immediate resistance sits at the descending channel's upper boundary around 1.4140, with the October 14 high of 1.4299 above. Support lies at the nine-day EMA at 1.4062, then the 50-day EMA at 1.4056, and a break lower could target 1.3850 and 1.3732.
Fed speakers Thomas Barkin and Austan Goolsbee pointed to persistent core services inflation and justification for future rate hikes, a more hawkish tone that strengthens the dollar against the Canadian dollar.