- USD/CAD edged higher on Friday and built on the overnight move beyond 100-day SMA.
- Hawkish Fed expectations continued underpinning the USD and extended some support.
- The uptick seems limited amid bullish oil prices and ahead of the US monthly jobs report.
The USD/CAD pair traded with a mild positive bias during the early European session and was last seen hovering near two-week tops, just below mid-1.2400s.
The US dollar stood tall near three-month tops amid speculations that the Fed will tighten its monetary policy earlier if price pressures continue to intensify. The market expectations were further fueled by Wednesday's US ISM Manufacturing survey, which showed that the prices paid sub-component jumped to a record 92.1. This, in turn, was seen as a key factor that extended some support to the USD/CAD pair.
Meanwhile, a subdued action around crude oil prices did little to influence the commodity-linked loonie or provide any meaningful impetus to the USD/CAD pair. In fact, WTI consolidated just below the highest level since October 2018, touched on Thursday after a disagreement within the OPEC+ delayed a decision on output levels. Investors now expect the standstill could end with the OPEC+ not increasing output at all.
That said, a fresh leg down in the US Treasury bond yields held the USD bulls from placing any aggressive bets and might keep a lid on any further gains for the USD/CAD pair. Investors also seemed reluctant, rather preferred to wait on the sidelines ahead of Friday's release of the US monthly jobs data. The closely watched NFP report could influence the Fed's policy outlook and drive the USD in the near term.
Apart from this, headlines coming out of the OPEC+ meeting could infuse some volatility in the oil market. This, in turn, might further contribute to producing some meaningful trading opportunities. In the meantime, the USD/CAD pair is more likely to extend its sideways consolidative price move above 100-day SMA pivotal point.
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
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
Meta takes a guidance slide amidst the battle between yields and earnings
Meta's disappointing outlook cast doubt on whether the market's enthusiasm for artificial intelligence. Investors now brace for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data.