March 24, 2022
USD/CAD: The Canadian dollar was little changed against the greenback on Wednesday. The currency held near a two-month high as the recent decline in financial market volatility led investors to focus on rising commodity prices more. U.S. stock markets fell on Wednesday but traded well above their February lows, while the price of oil, one of Canada’s major exports, settled 5.2% higher at $115 a barrel. Rising oil prices, as well as the prospect of further tightening of monetary policy in Canada, will continue to support the Canadian dollar in the coming days. Immediate support is seen at 1.2540. A breakout below could take the pair towards 1.2500.
GBP/USD: Sterling fell against the dollar on Wednesday after British finance minister Rishi Sunak announced measures to ease the U.K.’s cost-of-living squeeze and inflation hit a 30-year high. The pound was down 0.4% against a strengthening U.S. dollar at $1.32. Sunak cut taxes for workers and reduced duty on fuel against the backdrop of slowing economic growth and fast-rising inflation. The announcement came after figures showed inflation at 6.2% in February, up 5.5% in the 12 months to February 2022, more than the 6% rise expected by the market. High inflation may force the Bank of England to raise rates again. Immediate resistance can be seen at 1.3200. A breakout to the upside can trigger growth towards 1.3300.
EUR/USD: The euro weakened against the dollar on Wednesday amid another sharp increase in oil and gas prices and while investors waited for U.S. President Joe Biden to unveil new sanctions against Russia during his trip to Europe. Biden will push Europe to reduce its dependency on Russian oil and gas. If such decisions are made, the European currency will face a period of increased volatility and weakness. Immediate support is seen at 1.0950. A breakout below could take the pair towards 1.0900.