USD/CAD clings to gains near session tops, around 1.2470-75 region

USD/CAD regained positive traction on Tuesday amid a modest USD strength.
Hawkish Fed expectations, an uptick in the US bond yields underpinned the USD.
Positive oil prices might benefit the loonie and cap gains ahead of the US CPI.

Haresh Menghani FXStreet

The USD/CAD pair traded with a mild positive bias through the first half of the European session and was last seen hovering near daily tops, around the 1.2470-75 region.

Following the previous day's sharp pullback from levels beyond the key 1.2500 psychological mark, the USD/CAD pair managed to regain positive traction on Tuesday amid a modest US dollar strength. Expectations that the Fed is moving towards tightening its monetary policy stance sooner continued acting as a tailwind for the greenback and extended some support to the major.

It is worth recalling that the June FOMC meeting minutes released last Wednesday revealed that Fed officials agreed on the need to be ready to act if inflation or other risks materialize. Hence, the focus will remain glued to the release of the latest US consumer inflation figures, which may offer clues about the likely timing of tapering and interest rate hikes.

Apart from this, an uptick in the US Treasury bond yields was seen as another factor that underpinned the greenback. That said, a positive tone around crude oil prices might underpin the commodity-linked loonie and keep a lid on any strong gains for the USD/CAD pair. This warrants some caution for bullish traders and before positioning for any further appreciating move.

Apart from Tuesday's US CPI report, Fed Chair Jerome Powell's semi-annual congressional testimony on Wednesday and Thursday influence market expectations about the Fed's monetary policy outlook. This, along with the latest monetary policy update by the Bank of Canada on Wednesday, will play a key role in determining the next leg of a directional move for the USD/CAD pair.

Technical levels to watch

USD/CAD

Overview
Today last price	1.2472
Today Daily Change	0.0019
Today Daily Change %	0.15
Today daily open	1.2453

Trends
Daily SMA20	1.2374
Daily SMA50	1.2216
Daily SMA100	1.2375
Daily SMA200	1.264

Levels
Previous Daily High	1.2514
Previous Daily Low	1.2444
Previous Weekly High	1.259
Previous Weekly Low	1.2303
Previous Monthly High	1.2487
Previous Monthly Low	1.2007
Daily Fibonacci 38.2%	1.2487
Daily Fibonacci 61.8%	1.2471
Daily Pivot Point S1	1.2427
Daily Pivot Point S2	1.24
Daily Pivot Point S3	1.2356
Daily Pivot Point R1	1.2497
Daily Pivot Point R2	1.2541
Daily Pivot Point R3	1.2568

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD looks sidelined below 1.1600

EUR/USD remains on the back foot in the latter part of the NA session on Thursday, now attempting a consolidative theme in the sub-1.1600 region. A more cautious market mood, driven by the escalating conflict in the Middle East, together with broad-based strength in the US Dollar, is favouring the continuation of the leg lower in spot.

GBP/USD stays offered near 1.3340

GBP/USD fades Wednesday’s uptick and trades with decent losses in the 1.3340 zone in the latter part of Thursday’s session. Cable’s weakness, alongside the rest of the risk complex, follows the strong performance of the Greenback amid intense geopolitical jitters.

Gold falls as demand for the US Dollar resurges

Gold turns lower on Thursday, slipping back toward the $5,100 area. Persistent strength in the US Dollar (USD) is preventing the precious metal from building a meaningful recovery, even as markets remain risk-averse amid the deepening conflict in the Middle East.

Crypto Today: Bitcoin, Ethereum, XRP hold weekly gains despite US-Iran war

The cryptocurrency market is gaining strength on Thursday, building on Wednesday's upswing, which saw Bitcoin reach a weekly high above $74,000. Ethereum and Ripple are moderating their recent gains amid uncertainty stemming from the escalating war in the Middle East.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.

Ripple tests recovery strength amid steady ETF inflows, growing retail interest

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.