- A modest pickup in the USD demand helped bounce off lows.
- Oil prices retreat from tops and lend some additional support.
- Move beyond 100-DMA needed to confirm any additional gains.
The USD regained some positive traction in the last hour, helping the USD/CAD pair to quickly recovery around 20-pips from daily lows.
Having failed to capitalize on this week's goodish rebound from multi-month lows, the pair started retreating from 100-day SMA barrier and snapped three consecutive days of winning streak on Thursday.
A solid rebound in Crude Oil prices, surging over 4.0% intraday, provided a strong boost to the commodity-linked currency - Loonie and turned out to be one of the key factors weighing heavily on the major.
Oil prices rallied hard on Thursday in reaction to suspected attacks on two tankers in the Gulf of Oman, which raised concerns over potential disruptions to Oil flows and largely offset increasing US inventories.
Oil prices trimmed a part of the early strong gains, which coupled with a pickup in the US Dollar demand during the early North-American session helped the pair to find decent support near the 1.3300 handle.
The incoming softer US macro data - Wednesday's US consumer inflation being the latest, continued reinforcing market expectations that the Fed will be forced to cut interest rates by the end of this year.
However, the fact that such a move is already priced in, market participants seemed reluctant to place any aggressive USD bearish bets, rather preferred to cover their short positions heading into next week's FOMC meeting.
It would now be interesting to see if the pair is able to build on the intraday rebound or continues with its struggle to make it back above 100-DMA hurdle as the focus now shifts to Friday's US monthly retail sales data.
Technical levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.