- A modest USD rebound assisted USD/CAD to regain some positive traction on Friday.
- Mixed performance in oil markets did little to influence the loonie or move the pair.
- Investors look forward to Canadian monthly employment details for a fresh impetus.
The USD/CAD pair edged higher through the Asian session on Friday and was last seen hovering around the 1.2575 region, up 0.10% for the day.
The pair managed to regain some positive traction on the last trading day of the week and recover a part of the overnight losses. As investors looked past a stubbornly dovish Fed, the US dollar index staged a modest bounce from a near three-week low level of 92.00 and was seen as a key factor lending some support to the USD/CAD pair.
In the latest FOMC meeting minutes released on Wednesday, the Fed remained cautious and reiterated its commitment to extending monetary policy support until the US economic recovery was more secure. Adding to this, Fed Chair Jerome Powell said on Thursday that the stance would only shift after a few consecutive months of positive data.
That said, investors have been betting that a stronger economic recovery from the pandemic will force the Fed to raise interest rates sooner than anticipated. The optimistic outlook for the US economy was supported by the impressive pace of coronavirus vaccinations and US President Joe Biden's over $2 trillion infrastructure spending plan.
This, in turn, has been fueling speculations about a possible uptick in US inflation and raised doubts that the Fed will retain ultra-low interest rates for a longer period. Given that markets have already priced in a Fed lift-off by the end of 2022, the USD bulls now seemed to await a fresh catalyst before placing any aggressive bets.
Meanwhile, a mixed performance in oil markets did little to influence the commodity-linked loonie. The USD/CAD pair, however, lacked bullish conviction and so far, has been struggling to capitalize on the intraday gains as the focus remains on Friday's release of the monthly Canadian employment details, due later during the early North American session.
Technical levels to watch
|Today last price||1.2573|
|Today Daily Change||0.0010|
|Today Daily Change %||0.08|
|Today daily open||1.2563|
|Previous Daily High||1.2627|
|Previous Daily Low||1.2558|
|Previous Weekly High||1.2647|
|Previous Weekly Low||1.2528|
|Previous Monthly High||1.274|
|Previous Monthly Low||1.2365|
|Daily Fibonacci 38.2%||1.2585|
|Daily Fibonacci 61.8%||1.2601|
|Daily Pivot Point S1||1.2539|
|Daily Pivot Point S2||1.2514|
|Daily Pivot Point S3||1.2469|
|Daily Pivot Point R1||1.2608|
|Daily Pivot Point R2||1.2652|
|Daily Pivot Point R3||1.2677|
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