- USD/CAD regains positive traction on Thursday and moves little post-US/Canadian macro data.
- A modest bounce in crude oil prices underpins the loonie and acts as a headwind for the major.
- Rising US bond yields offer some support to the USD and remain supportive of the bid tone.
The USD/CAD pair retreats a few pips from the daily high and is currently placed just above the 1.3700 mark, still up over 0.80% for the day.
The US dollar surrenders a major part of its strong intraday gains and turns out to be a key factor acting as a headwind for the USD/CAD pair. Apart from this, an intraday bounce in crude oil prices offers some support to the commodity-linked loonie and further contributes to capping the upside for spot prices.
That said, a combination of factors underpins the greenback and remains supportive of the bid tone surrounding the USD/CAD pair. Expectations that the Fed will stick to its aggressive policy tightening path triggers a fresh leg up in the US Treasury bond yields. This, along with the risk-off impulse, benefits the safe-haven buck.
The market sentiment remains fragile amid worries about the potential economic fallout from the rapidly rising borrowing costs and the risk of a further escalation in the Russia-Ukraine conflict. Moreover, concerns that a deeper global economic downturn will dent fuel demand should cap any meaningful upside for oil prices.
The USD/CAD pair, meanwhile, reacts little to mostly upbeat macro data from the US and Canada. The final GDP report showS that the world's largest economy contracted by 0.6% annualized pace during the second quarter, matching expectations. Furthermore, the US Weekly Initial Jobless Claims fell more than anticipated last week.
From Canada, the monthly GDP print surpasses consensus estimates and records a modest 0.1% growth in July, though fails to provide any impetus. That said, the fundamental backdrop suggests that the path of least resistance for the USD/CAD pair is to the upside and any corrective pullback could be seen as a buying opportunity.
Technical levels to watch
|Today last price||1.371|
|Today Daily Change||0.0096|
|Today Daily Change %||0.71|
|Today daily open||1.3614|
|Previous Daily High||1.3833|
|Previous Daily Low||1.3603|
|Previous Weekly High||1.3613|
|Previous Weekly Low||1.3227|
|Previous Monthly High||1.3141|
|Previous Monthly Low||1.2728|
|Daily Fibonacci 38.2%||1.3691|
|Daily Fibonacci 61.8%||1.3745|
|Daily Pivot Point S1||1.3534|
|Daily Pivot Point S2||1.3453|
|Daily Pivot Point S3||1.3304|
|Daily Pivot Point R1||1.3764|
|Daily Pivot Point R2||1.3914|
|Daily Pivot Point R3||1.3994|
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.