- Recovering US bond yields/upbeat US data helped the USD to gain some traction.
- Positive Oil prices underpinned Loonie and kept a lid on any meaningful up-move.
The USD/CAD pair refreshed session tops, around the 1.3065-70 region during the early North-American session, albeit seemed to lack any strong follow-through.
Against the backdrop of an intraday bounce in the US Treasury bond yields, the US Dollar got a minor lift following the release of stronger-than-expected Philly Fed manufacturing index, which jumped to 21.8 in July as compared to a 5.0 rise expected and 0.3 previous.
Meanwhile, the release of Canadian ADP report, showing an additional of 30.4K non-farm industry jobs, did little to influence the price action, albeit a positive tone around Crude Oil prices underpinned the commodity-linked currency - Loonie and capped gains.
Oil snapped three consecutive days of losing streak and remained supported by escalating geopolitical tensions in the Middle East, especially after Iran reportedly said that it had seized a foreign tanker with 12 crew members accused of smuggling oil.
It would now be interesting to see if the pair is able to capitalize on the uptick or meets with some fresh supply at higher levels amid rising odds for an aggressive monetary easing by the Fed when it announces its policy decision following a two-day meeting on July 30-31.
In the meantime, a scheduled speech by the New York Fed President John Williams might influence the USD price dynamics and produce some short-term trading opportunities later during the US session.
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 drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price holds strength ahead of US core PCE inflation
Gold price holds onto gains near $2,200 in Thursday’s European session. The precious metal exhibits firm footing ahead of the United States core PCE Price Index data for February, which will be published on Friday.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.