USD/CAD climbs to fresh 2018 tops near 1.3280

The greenback picks up further pace vs. CAD around 1.3280.
US-CA 2-year yield spread widen further, supporting the buck.
US Housing Starts and Building Permits next on tap.

Pablo Piovano FXStreet

The greenback trades in fresh yearly peaks vs. its Canadian counterpart on Tuesday, pushing USD/CAD to levels closer to the 1.3300 handle, or fresh YTD tops.

USD/CAD looks to tariffs, data

Heightened concerns on the US-China trade dispute has prompted a sell off in the riskier assets and the commodity bloc, lifting the buck and the pair to levels last traded a year ago in the 1.3280 region.

In addition, US-CA yields spread differentials continue to widen, particularly in the shorter end of the curve, lending additional support to the greenback, which trades in fresh YTD peaks when gauged by the US Dollar Index (DXY).

Further CAD weakness comes from crude oil dynamics, where the barrel of the West Texas Intermediate is extending the down move as nervousness is rising among traders in light of the upcoming OPEC meeting in Vienna on Friday.

Later in the NA session, US Housing Starts and Building Permits will be the only release in the US calendar seconded by the speech of San Francisco Fed J.Bullard at the ECB Forum in Sintra.

USD/CAD significant levels

As of writing the pair is losing 0.63% at 1.3285 facing the next hurdle at 1.3349 (high Jun.29 2017) seconded by 1.3423 (78.6%% Fibo of the 2017 drop) and finally 1.3541 (high Jun.9 2017). On the flip side, a breach of 1.3132 (61.8% Fibo of the 2017 drop) would open the door to 1.2991 (21-day sma) and then 1.2857 (low Jun.6).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold drifts higher to near $5,000 on heightened US-Iran tensions

Gold price holds positive ground near $5,000 during the early Asian session on Friday. The precious metal edges higher as escalating tensions between the United States and Iran boost safe-haven demand. Traders brace for the preliminary reading of US Gross Domestic Product for the fourth quarter, the Personal Consumption Expenditures and the S&P Global Purchasing Managers Index data, which are due later on Friday.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.