USD/CAD bounces higher to 1.3050 as Oil sell-off extends

Dhwani Mehta FXStreet

The US dollar fought back the bids from its Canadian counterpart in the European session, with USD/CAD having brought an end to its three-day decline.

USD/CAD extends beyond 1.3000

Currently, the USD/CAD pair jumps +0.48% to fresh session highs of 1.3048, recovering sharply from session lows struck at 1.2969 in the Asian opening trades. The USD/CAD pair witnessed steep gains this Friday, after the oil-price sell-off intensified during the European trading hours and weighed heavily on the resourced-linked Loonie. Canada is highly dependent on oil revenues as Oil is its top export product.

Moreover, resumption of the recent uptrend in the US dollar against its major rivals on increased expectations of upbeat US Q1 GDP revision, also added to the robust recovery in the CAD pair. Moreover, the PCE annualized index along with the GDP price index will be released, while Fed Chair Janet Yellen’s speech will be also closely followed.

USD/CAD Technical Levels

To the upside, the next resistances are seen near 1.3058/60 (10 & 5-DMA) and 1.3077/97 (1h 100-SMA/ daily R2). To the downside, immediate support might be located at 1.2982 (20-DMA) and below that at 1.2900/1.2886 (round number/ 50-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD looks mildly offered near 1.1660 ahead of US CPI

EUR/USD faces some renewed selling pressure, always below the 1.1700 mark and navigating a tight range on the back of a decent uptick in the US Dollar. In the meantime, investors remain cautious ahead of the release of the key US inflation data tracked by the CPI.

GBP/USD challenges daily lows near 1.3460 prior to US inflation

GBP/USD struggles for direction and slips back to the lower end of the range near 1.3460 on turnaround Tuesday. Cable trades in a narrow range amid a bid bias in the Greenback ahead of the publication of the December US CPI prints.

Gold comes under pressure below $4,600, focus on US CPI

Gold prices trade with modest losses and recedes to the sub-$4,600 region on Tuesday, reversing three consecutive daily pullbacks. The yellow metal’s correction comes amid an improvement in the US Dollar prior to the release of the US inflation rate.

CPI Data expected to show stable inflation in December with limited implications for Fed policy

The US Bureau of Labor Statistics will publish December’s Consumer Price Index report on Tuesday at 13:30 GMT. The report is expected to show that prices remained broadly stable in the last month of 2025. It’s a key read on inflation and could stir some short-term moves in the US Dollar.

More pressure on the Federal Reserve emerges

News broke on Sunday night that the Federal Reserve received grand jury subpoenas from the Department of Justice on Friday, escalating the Trump administration's pressure on the nation's central bank.

Meme Coins Price Prediction: DOGE, SHIB, and PEPE bulls struggle to regain strength

Meme coins, including Dogecoin, Shiba Inu, and Pepe remain under extreme selling pressure, recording roughly seven days of downtrend following the January 4 spike. The meme coins risk a bearish shift in momentum as buying pressure subsides, potentially leading to further declines.