CAD slips modestly on firmer USD – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) has slipped a little overnight after briefly probing sub-1.38 levels late yesterday. President Trump commented that PM Carney will visit Washington shortly and anticipated a 'great relationship' with Canada, Scotiabank's Chief FX Strategist Shaun Osborne notes.

CAD remains better supported overall

"That’s quite a bit different from some of the president’s other comments recently on Canada and the comments helped nudge USDCAD a little lower and bolster the CAD’s broader performance. Moderate losses so far today reflect the general strength in the USD rather than any CAD-negative development and the CAD is the only G10 currency holding a gain on the USD on the week so far."

"The CAD has made up some ground on the crosses as a result. Spot is consolidating after dipping briefly under 1.38 yesterday to test congestion support at 1.3775. Marginal new cycle lows keep the grinding tone of USD weakness intact and DMI oscillators oriented bearishly for the USD."

"But the CAD’s failure to hold gains on the USD today and a narrow, inside range session (at the moment) points to consolidation in the short run. USD gains may extend to the mid/upper 1.38s in the short run. Resistance is 1.3880 and 1.4000/25."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.