USD/CAD bulls moving in to test above 1.3500

The USD/CAD bulls will be looking to guard the support area near the 50% mean reversion mark with 1.3600 eyed.
CAD is pressured from all sides while US Dollar catches a bid.

Ross J Burland FXStreet

USD/CAD is edging higher in Asia as the US Dollar firms. At the time of writing, USD/CAD is trading at 1.3511 and has traveled between a low of 1.3486 and a high of 1.3512.

The Loonie has been under pressure with a drop in oil prices as well while, at the same time, the Bank of Canada Governor Tiff Macklem stopped short of endorsing the market's recent move to price in another interest rate hike by the central bank.

Reuters reported that Macklem suggested April's inflation increase - the first in 10 months - was an anomaly and said consumer prices would continue to come down, in comments following the release of the BoC's financial system report.

Meanwhile, futures are pricing in a roughly 60% chance of the central bank resuming interest rate hikes by July, down from 80% before Macklem spoke.

Elsewhere, the optimism over debt ceiling talks in Washington has raised expectations of higher-for-longer interest rates. This has led to the US Dollar firming to a near a six-month peak against the yen on Friday on the back of rising US Treasury yields.

Reuters reported that President Joe Biden and top US congressional Republican Kevin McCarthy earlier this week underscored their determination to strike a deal soon to raise the government's $31.4 trillion debt ceiling, with hopes of finalizing a deal after Biden returns from the Group of Seven meeting in Japan on Sunday.

USD/CAD technical analysis

The bulls will be looking to guard the support area near the 50% mean reversion mark with 1.3600 eyed.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited

The GBP/USD pair struggles to capitalize on the previous day's late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.

Gold regains positive traction after Tuesday's over 2% slump as traders await FOMC Minutes

Gold gains some positive traction during the Asian session on Wednesday and recovers a part of the previous day's heavy losses more than 2%, to the $4,843-4,842 region or a nearly two-week low. The intraday move higher could be attributed to repositioning trade ahead of the release of the FOMC Minutes.

Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs

Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.