USD/CAD again aims for 100-day EMA amid WTI strength

USD/CAD holds onto recent recovery gains.
WTI benefits from comments of Kuwait’s oil minister and geopolitical tension from the Middle East.
US CPI, trade/political news will be important to follow.

Anil Panchal FXStreet

With WTI prices remaining firm, the USD/CAD pair again aims to confront 100-day exponential moving average (EMA) while taking the bids to 1.3240 on early Tuesday.

The pair recently benefited after oil responded positively to comments from Kuwait's oil minister Khaled al-Fadhel that his country was “fully committed” to implementing an agreement between oil-exporting countries to cut production in order to support crude prices. Adding to the upside could be receding geopolitical tension from China after Hong Kong airport resumed operations following a day of closure due to 10-week-old protests.

However, the quote still remains under pressure as the US-China trade deal pessimism still weighs on the commodity-linked currencies and commodity prices.

Moving on, the US Consumer Price Index (CPI) data for July will be the key for the pair traders amid lack of Canadian catalysts. The headline CPI is expected to rise to 0.3% from 0.1% on MoM basis while likely increasing to 1.7% versus 1.6% earlier on a yearly format. Though, like weakness in the CPI ex-Food & Energy (MoM) number from 0.3% to 0.2% could limit the US Dollar (USD) gains.

Technical Analysis

A sustained break of 100-day EMA level of 1.3250 favors the pair’s run-up towards August 07 low near 1.3267 and then to the monthly high around 1.3346. Alternatively, 1.3200 becomes strong support, a break of which can recall early July high near 1.3140 on the chart.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.