USD/CAD advances beyond 1.30 as DXY jumps above 94

ECB meeting weighs on European currencies, boosts the demand for the USD.
DXY rises to fresh 2-week high above 94.
USD/CAD erases daily losses, turns positive above 1.30.

Eren Sengezer FXStreet

The USD/CAD pair added more than 50 pips in the last hour and rose above the critical 1.30 mark after the ECB announcements and the following press conference forced investors to lean toward the USD. As of writing, the pair is trading at 1.3002, up 0.12% on the day.

The ECB announced that it would start tapering the amount QE purchases after September but failed to deliver a hawkish message as Draghi said interest rates would remain at their current level until at least the end of the summer of 2019. Boosted by the shift in the market interest, the US Dollar Index jumped to its best level since June 1 at 94.31 and was last seen at 94.28, where it was up 0.77% on the day.

Meanwhile, the data from the United States showed that the retail sales increased by 0.8% in May to beat the market expectation of 0.4% and the import and export prices indexes on a yearly basis rose by 4.3% and 4.9% in May, both figures surpassing the experts' estimates.

There won't be any other macroeconomic data releases in the remainder of the day. However, the positive mood surrounding crude oil prices could make it difficult for the pair to extend its gains as it would help the commodity-linked loonie to show resilience against the greenback.

Technical levels to consider

With a daily close above 1.3000 (psychological level), the pair could target 1.3050 (Jun. 13 high) and 1.3100 (psychological level). On the downside, supports are located at 1.2955 (20-DMA/daily low), 1.2865 (50-DMA) and 1.2815 (May 31 low).

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 trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.