USDCAD, H1

US initial jobless claims slipped 1k to 211k in the week ended May 18 after dropping 16k to 212k in the May 11 week (revised from 212k). This is the lowest since the 193k from April 13, with that level not seen since late 1969. The 4-week moving average moved down to 220.25k from 225k. Continuing claims bounced 12k to 1,676k in the week ended May 11 after falling 22k to 1,664k previously (revised from 1,660k). The job market remains strong, but the data will be overlooked as trade issues remain the focal point for sentiment. The Dollar moved to session lows against the Yen and Euro after the slightly better than expected jobless claims, though it had been trending in that direction ahead of the data.

USDJPY continues to be weighed down by the sharp deterioration in risk taking levels, bottoming so far at 109.96. EURUSD moved up to 1.1143 from 1.11128 lows and USDCAD slipped to 1.3462.

Earlier USDCAD rallied to one-week highs of 1.3476, up from the near one-month low of 1.3358 seen following the better Canada retail sales outcome on Wednesday. The sharp fall in the oil price has been the main driver of the latest rally, with WTI crude trading under the key $60 mark for the first time since late March. Risk-off conditions have weighed on the CAD as well, with not only the US/China trade spat impacting, but also concerns that the USMCA trade agreement will not be ratified, given the current war between the White House and Congress. The next USDCAD upside target comes at 1.3513, the May 17 high, following the strong resistance at 1.3500. The daily chart has failed to close north of 1.3500 since January 2nd.

USDCAD

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex Majors

Cryptocurrencies

Signatures