USD/CAD advances beyond 1.2450 on unabated USD strength

USD/CAD extends rally to fresh multi-month highs on Friday.
US Dollar Index continues to push higher after breaking above 92.00.
CAD struggles to capitalize on recovering crude oil prices.

Eren Sengezer FXStreet

The USD/CAD pair broke above 1.2400 on Friday and reached its strongest level since April 26 at 1.2453. As of writing, the pair was up 0.7% on the day at 1.2445. On a weekly basis, the pair is up nearly 300 pips and remains on track to post its largest weekly gain of the eyar.

Bullard comments boost USD

The unabated USD strength remains the main market theme ahead of the weekend. In the absence of significant fundamental drivers and high-tier macroeconomic data releases, the US Dollar Index preserved its bullish momentum on Friday. Additionally, the sharp drop witnessed in Wall Street's main indexes allowed the USD to gather additional strength. Currently, the DXY is at its strongest level in more than two months at 92.35, rising 0.5% on a daily basis.

Earlier in the day, St. Louis Fed President James Bullard told CNBC that the Fed's June meeting represented a "somewhat hawkish" move. Bullard further noted that inflation was more intense than expected and said FOMC Chairman Jerome Powell officially opened taper discussions at the last meeting.

Meanwhile, the barrel of West Texas Intermediate (WTI) is up more than 1% at $71.85 on Friday but rising crude oil prices don't seem to be helping the loonie limit its losses ahead of the weekend.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2453
Today Daily Change	0.0095
Today Daily Change %	0.77
Today daily open	1.2358

Trends
Daily SMA20	1.2117
Daily SMA50	1.2238
Daily SMA100	1.2432
Daily SMA200	1.2716

Levels
Previous Daily High	1.2378
Previous Daily Low	1.2262
Previous Weekly High	1.2178
Previous Weekly Low	1.2057
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2334
Daily Fibonacci 61.8%	1.2307
Daily Pivot Point S1	1.2288
Daily Pivot Point S2	1.2217
Daily Pivot Point S3	1.2172
Daily Pivot Point R1	1.2403
Daily Pivot Point R2	1.2449
Daily Pivot Point R3	1.2519

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.