USD/CAD: A sustained break above 1.3720 to strengthen the USD – Scotiabank

FXStreet Insights Team FXStreet

The Canadian Dollar (CAD) has slipped a little in overnight trade, Scotiabank’s chief FX strategist Shaun Osborne notes.

Resistance above the market sits at 1.3750/55

“US Dollar (USD) gains are very marginal on the day but spot looks set to close net higher on the week for the first time since early June. After testing the recent range base around 1.36 last week, spot may drift a little higher in the near-term to test the early July high around 1.3750. Canadian Retail Sales are expected to decline 0.6% in May, in line with the flash estimate released with the April data last month."

"Ex-auto sales are forecast to fall 0.5% in the month. Weak data—while not a surprise—might solidify market expectations for a cut at next week’s BoC policy decision although the consensus forecast is narrowly divided and expects a 'hold'."

"Spot gains are holding close to yesterday’s peak in the USD around 1.3720 where potential trend resistance may be developing but gains through the low 1.37 zone do tilt near-term risks towards a bit more USD strength in the short run. Resistance above the market sits at 1.3750/55 and 1.3790/00. Intraday support is 1.3680/90."

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.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.