USD/CAD bears stay in control as US dollar wilts in its recovery attempts


  • USD/CAD bears stay within daily lows vicinity and eye lower grounds yet.
  • US dollar under pressure from all sides as risk sentiment remains elevated.

USD/CAD is in the hands of the bears although the price attempts to correct from the daily lows. At the time of writing, USD/CAD is trading at 1.3247 between a range of 1.3229 and 1.3347. 

A risk-on sentiment in markets on Wednesday have undermined the US dollar's recent recovery, despite a bet in the Consumer Price Index today. 

 Prices trended up in the US in July with the headline CPI up 0.6% MoM, this was double the rise expected.

Core CPI also rose 0.6%, its largest rise in nearly 30 years. Clothing prices lifted 1.1% while used cars gained 2.3% and fuel prices shot up 5.6%.

This data and the PPI released a day earlier were both stronger than expected but with the virus still raging in the US it may be some time before there is a sustained improvement in economic activity.,

analysts at ANZ Bank explained. 

The loonie has been on the march this month, and in the absence of domestic data, the currency will be highly reliant on geopolitical developments driving risk sentiment.

However, while US stocks were moving to test the 2020 highs, this was despite the fact that Congressional negotiations, relating to aid for Americans suffering the economic fallout of COVID-19 have broken down.

An agreement on the US fiscal stimulus package might have provided some positive spill-over on CAD, which may incidentally need clear signs of slowing US contagion to unlock more upside across the board.

So far, however, it is not to be.

US Treasury Secretary Steven Mnuchin said on Wednesday that the White House and top Democrats in Congress may not be able to reach a deal on coronavirus aid, in the fifth day without talks on the stalemate blocking relief to tens of millions of Americans.  


USD/CAD levels

USD/CAD

Overview
Today last price 1.3251
Today Daily Change -0.0050
Today Daily Change % -0.38
Today daily open 1.3301
 
Trends
Daily SMA20 1.3406
Daily SMA50 1.3498
Daily SMA100 1.375
Daily SMA200 1.3531
 
Levels
Previous Daily High 1.3361
Previous Daily Low 1.3271
Previous Weekly High 1.3451
Previous Weekly Low 1.3234
Previous Monthly High 1.3646
Previous Monthly Low 1.3331
Daily Fibonacci 38.2% 1.3305
Daily Fibonacci 61.8% 1.3326
Daily Pivot Point S1 1.3261
Daily Pivot Point S2 1.3221
Daily Pivot Point S3 1.3171
Daily Pivot Point R1 1.3351
Daily Pivot Point R2 1.3401
Daily Pivot Point R3 1.3441

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD: Depressed near monthly low under 0.7200, eyes Aussie Retail Sales

AUD/USD fades pullback moves from multi-day low of 0.7153 around 0.7180/75. Recovery in market sentiment fails to help the bulls as US dollar stays strong. Aussie PMIs, Preliminary Retail Sales for September are in the spotlight, for now.

AUD/USD News

GBP/USD falling in largest monthly drop since March

GBP/USD bears stay on top, taking the pair down in the largest monthly percentage drop since March. Brexit, COVID-19, negative rate sentiment and risk-off environment playing in the hands of the bears.

GBP/USD News

Gold licks its wounds around $1,900

Gold pulls back from $1,898.57 after two consecutive days of downside. Broad US dollar strength becomes the key catalyst. A busy day ahead as Japan returns from extended weekend and monthly PMIs are up for a grab.

Gold News

WTI probes post-API declines to regain $40.00, eyes PMIs, EIA inventories

WTI bounces off $39.64 after declining for three consecutive days. API stocks added 0.691M versus previous draw of 9.517M during the week ending of September 18. Coronavirus resurgence, strong US dollar disappoint energy buyers amid supply glut.

Oil News

Dollar rally sends these currencies to 1 month lows

The US dollar traded higher against all of the major currencies on Tuesday on the back of relatively neutral comments from Federal Reserve Chairman Jerome Powell. Although Powell described the outlook as highly uncertain and ...

Read more

Forex MAJORS

Cryptocurrencies

Signatures