The Canadian dollar is stronger this morning when valued against the Greenback. The Canadian dollar reached a 2-week high as U.S. Federal reserve preached patience regarding interest rate settings moving forward. The Federal Reserve has presented a dovish stance in 2019, and this position was underscored in the minutes from the January 2019 policy meeting.
On the release front yesterday ADP nonfarm payrolls rebounded with a sharp gain of 35.4k. Wholesale Sales posted a gain of 0.3%, beating the forecast of -0.2%. On Friday we will see the release of Retail Sales data for the month of December. Inflation in December was unexpectedly strong, and employment rose sharply in January.
From a technical perspective, the USD/CAD pair is currently trading at 1.3227. We continue to expect support to hold on moves approaching 1.3160 while now any upward push will likely meet resistance around 1.3240.