CAD gains with a mild recovery in Crude

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - The Canadian dollar gained strength against its US counterpart, tracking the mild recovery in the Crude prices. The USD/CAD pair snapped a two-day rally seen on the back of a sharp fall in Crude prices.

USD/CAD rejected at 10-DMA

The pair was driven lower after it faced rejection at the 10-DMA located located at 1.2491. The CAD gained as the crude April futures in the US recovered from the low of USD 51.88/barrel to trade at USD 52.16/barrel; up 0.63%. Crude prices managed to recover from lows despite the inventories in the US rising to record highs, as per the EIA data released yesterday. It remains to be seen whether Crude prices and the CAD manage to hold on to their gains for the rest of the day.

USD/CAD Technical Levels

The immediate resistance is seen at 1.2491 (10-DMA) above which gains could be extended to 1.2544 levels On the flip side, support is seen at 1.2458 (5-DMA) and 1.2421 levels.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD slides below 1.3250 after failing to break through 23.6% Fibo

The GBP/USD pair meets with a fresh supply during the Asian session on Wednesday and moves away from a nearly two-week high around the 1.3275 region, touched the previous day. Spot prices currently trade around the 1.3235 zone, down 0.20% for the day, as traders look to speeches from Bank of England Governor Andrew Bailey and Federal Reserve Chair Kevin Warsh for a fresh impetus.

EUR/USD trims losses, back above 1.1400

The US Dollar’s correction motivates EUR/USD to bounce off earlier lows and reclaim the area beyond the 1.1400 hurdle on Wednesday. The pair’s rebound follows the loss of momentum in the Greenback following auspicious news over a final US-Iran deal.

Gold surpasses $4,100, six-day highs

Gold keeps pushing higher and climbs to multi-day peaks north of the $4,100 mark per troy ounce on Wednesday. The precious metal’s marked rebound comes in response to the US Dollar’s knee-jerk, a somewhat less hawkish tone from the Fed’s Warsh and positive headlines from the Middle East.

A preview of NFP

The number is of much greater importance than usual as the Fed moves away from a forecasting framework and towards a current-data / rebuilding-credibility framework.

Crypto Today: Bitcoin, Ethereum, XRP stay under pressure as investors turn more risk-averse

The cryptocurrency market trades under intense headwinds on Wednesday, led by Bitcoin’s (BTC) deepening sell-off below $60,000. The Crypto King hovers above $58,000.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.