In the last FOMC conference meeting and economic projections, the Feds stated that interest rate hike would be data dependent. The major data’s they intend to focus on is the Labor sector, inflation reports and wage growth. Last week, data from unemployment claims and inflation showed improvement in the economy as investors are still holding grounds rate hike is expected by June or at worst September this year.
Weekly bias is on the upside. Despite falling lower to 1.2409 last week, USD/CAD got strong support from 1.2405( March 4 low) and recovered. Near term outlook remains unchanged and still bullish. As long as 1.2405 support holds, recent up trend is still expected to extend through 1.2833 to 1.3064 (March 1 2009 high) key resistance.
In the week ahead, investors will be focusing the U.S. employment report for February, due out on Friday and Monday’s data on personal spending for further indications on the path of monetary policy.