The USD/CAD pair is consolidating above the 1.3200 level as investors await the release of key economic data from Canada and the US. The Canadian dollar is expected to receive support from the Retail Sales data, which is expected to show a modest increase in April. However, the oil price is capped above $72.00, which could limit the upside for the USD/CAD pair.
The Retail Sales data is scheduled to be released at 10:30 AM ET. Economists are expecting a 0.2% increase in April, after a contraction of 1.4% in March. The data excluding automobile numbers is expected to increase by 0.4%.
The oil price is trading at $72.00 per barrel, after rising to a high of $72.70 earlier today. The oil price is supported by the ongoing supply disruptions in Libya and Nigeria. However, the upside for the oil price is limited by concerns about the global economic slowdown.
The USD/CAD pair is trading at 1.3233, after rising to a high of 1.3256 earlier today. The pair is expected to remain range-bound ahead of the release of the Retail Sales data.
Here are some additional factors that could influence the USD/CAD pair in the near term:
- The outcome of the Fed chair Jerome Powell’s testimony to the Senate Banking Committee on Wednesday.
- The release of US employment data on Friday.
- The developments in the Russia-Ukraine war.
Overall, the USD/CAD pair is expected to remain range-bound in the near term. However, the release of key economic data from Canada and the US could provide some volatility to the pair.