USD/CAD bulls making a fresh attempt to extend momentum beyond 1.3300 handle

Haresh Menghani FXStreet

• Regains positive traction amid some renewed USD buying interest.
• Bulls seemed unaffected by the prevalent bullish move in oil prices.
• Traders now eye second-tier economic releases for some impetus.

After yesterday's late pull-back from three-week tops, the USD/CAD pair caught some fresh bids on Friday and was now seen making a fresh attempted to build on its momentum beyond the 1.3300 handle.

The pair did get a strong boost and rallied to an intraday high level of 1.3340 on Thursday following the release of disappointing Canadian manufacturing sales data. However, shockingly poor US monthly retail sales data for December triggered a broad-based US Dollar weakness and prompted some long-unwinding trade later in the day.

With investors looking past overnight dismal data, the greenback regained some positive traction and helped regain positive traction on the last trading day of the week. The uptick seemed rather unaffected by the prevailing bullish sentiment surrounding the oil market, which tends to underpin demand for the commodity-linked currency - Loonie.

In fact, WTI crude oil prices remained within striking distance of 2019 highs, supported by OPEC-led supply cuts and a partial shutdown of Saudi Arabia's biggest offshore oil field, and might turn out to be only factor keeping a lid on any runaway rally, at least for the time being and amid absent major market-moving economic releases.

Today's US economic docket features some second-tier releases of Empire State Manufacturing Index, industrial production data and Prelim UoM Consumer Sentiment, which might be looked upon for some short-term trading impetus later during the early North-American session.

Technical levels to watch

Any subsequent up-move might continue to confront some fresh supply near mid-1.3300s, above which the pair is likely to aim towards surpassing the 1.3400 handle before eventually darting to test the 1.3430-35 supply zone. On the flip side, the 1.3270 level now seems to act as immediate support, which if broken might drag the pair further towards 100-day SMA support near the 1.3240-35 region en-route the 1.3200 round figure mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD accelerates losses, focus is on 1.1800

EUR/USD’s selling pressure is gathering pace now, opening the door to a potential test of the key 1.1800 region sooner rather than later. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and the publication of the FOMC Minutes later in the day.

GBP/USD turns negative near 1.3540

GBP/USD reverses its initial upside momentum and is now adding to previous declines, revisiting at the same time the 1.3540 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs just above the key $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.