USDCAD, H4
The dollar has been trading firmer so far today, while weakness in the yen and sterling have remained themes. The dollar bloc currencies have also seen particular weakness, concomitantly with corrections in commodity prices and global stock markets. EURUSD, meanwhile, has flat-lined in the mid 1.2300s, remaining comfortably off the three-week high posted on Tuesday at 1.2414 and comfortably above the week’s low at 1.2324. USDJPY nudged out a one-week high at 107.73 during the Tokyo session, coming within 5 pips of last Friday’s two-month peak. The move reflected dollar firmness as EURJPY and other yen crosses traded flat or modestly lower. In data today, Japanese March CPI came in at the expected 1.1% y/y in the headline reading, while the BoJ-watched core reading ebbed to a 0.9% y/y rate from 1.0% y/y, which underscores the recent and ongoing concerns about chronically below-target inflation of Japanese policymakers. Sterling extended losses generated this week by a triple set of sub-forecast top-tier data releases. Cable is down for a fourth consecutive day, this time logging a two-week low at 1.4055, while EURGBP is up for a fourth consecutive day, logging a three-week high at 0.8778. As for the dollar bloc, AUDUSD logged an 11-day low at 0.7705, and USDCAD a 10-day high at 1.2676.
For the USDCAD a correction in oil prices, which have descended to back near the $68.0 in the WTI benchmark market after making a 40-month high at $69.56, along with a generally firmer bias in the U.S. dollar, have driven the rebound in USDCAD. The Canadian dollar had already been coming off the boil in the wake of the BoC’s mid-week policy meeting, where the statement indicated that the central bank would maintain its cautious stance on future policy changes, which remain data dependent. The latest price action in USD-CAD suggests a weakening in the downside trend that’s been developing over the last three weeks, from levels near 1.3100. The Daily Pivot is at 1.2645.
There's more! Access all our latest analyses and other great content by subscribing to the HotForex Youtube channel. You can also talk to our experts live by registering for one of our free webinars!
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.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.