- USD/CAD refreshes intraday high to 1.3970, prints two-day winning streak.
- US dollar extends recovery as the US-China tussle intensifies.
- WTI pullback from 10-week top amid fresh risk-off and challenges to demand.
- Canadian Retail Sales will decorate the calendar, US-China tension will be the key.
USD/CAD takes the bids to 1.3978, up 0.16% on a day, during the initial trading hours of Friday. The Loonie pair recently gained bids as updates from China’s 13th National People's Congress (NPC) heavy the risks and offer additional strength to the US dollar. Also, the downbeat comments weigh on the crude oil, Canada’s main export, which in turn adds strength to the pair.
By citing the coronavirus (COVID-19) as the key reason for not providing the year 2020’s GDP target, Chinese diplomats triggered speculations that the dragon nation still fears the worrisome outcome of the pandemic.
Additionally, updates from the NPC suggest that Chinese policymakers are edging closer to tighten their grip over Hong Kong. The issue has recently been in the spotlight after the US policymakers showed readiness to make sure that Hong Kong is free from the dragon nation’s pressure.
Before a few days, concerns mounted that the Asian major is back to its pre-crisis level, as per the crude demand, which set the floor for the WTI benchmark’s fresh run-up. That said, the black gold drops to $33.32, down 1.90%, by the press time.
Elsewhere, the US dollar stretches Thursday’s recovery moves amid the fresh risk-off sentiment. That said, the US dollar index (DXY), the gauge of the greenback versus major currencies, register 0.10% gains to 99.50 as we write.
Moving on, Canada’s April monthly Retail Sales, expected to drop 10.0% on MoM basis versus +0.3% prior, can occupy the mostly light economic calendar while updates from China and/or concerning the US-China tussle will be the key for fresh direction.
Technical analysis
Successful recovery beyond 50-day EMA, at 1.3950 now, propels the quote towards 1.4000 round-figures ahead of highlighting May 14 top near 1.4140. Alternatively, the pair’s drop below 1.3950 can refresh the monthly low well under the current bottom around 1.3865.
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.
Latest Forex News
Editors’ Picks
EUR/USD holds onto highs despite souring mood
EUR/USD is trading above 1.22 but off the highs. US Durable Goods Orders jumped by 3.4% in January, better than expected, and jobless claims surprised with a fall to 730K. Q4 GDP upgraded to 4.1%, as expected. The dollar is down despite falling stocks and rising US yields.
XAU/USD drops further to $1770 ahead of critical support
Gold dropped further during the American session and bottomed at $1769, the lowest level since last Friday. The metal erased weekly gains and is back below $1780 as US yields keep rising.
S&P 500: Day Ahead Outlook Inflation fears linger as doves hit turbulence
US equity markets look for direction on Thursday with mixed signals leading to steady and slightly lower trade. Inflation concerns haven't gone away as the US 10 year hits another year high at nearly 1.5%.
Crypto bull run on track amid surge in US inflation expectations
The crypto bull run has taken a breather after the gruesome drop in value at the beginning of this week. Bitcoin led the freefall, dropping from $58,000 to $45,000. Generally, all cryptocurrencies retraced and are now holding above key support levels to prepare for another upswing to new yearly highs.
US Dollar Index remains depressed below 90.00
The greenback manages to bounce off weekly lows near 89.70, although it keeps navigating a sea of red when gauged by the US Dollar Index (DXY).