USD/CAD clings to modest gains, remains below 1.3700 mark post-Canadian GDP


  • A combination of supporting factors assisted USD/CAD to regain some traction on Tuesday.
  • Concerns about rising coronavirus cases continued benefitting the safe-haven greenback.
  • Sliding oil prices undermined the loonie and remained supportive of the intraday move up.
  • The pair moved little after data showed the Canadian economy contracted less-than-expected.

The USD/CAD pair held on to its modest daily gains, albeit remained below the 1.3700 round-figure mark post-Canadian GDP report.

Following the previous day's intraday pullback of around 60 pips, the pair managed to regain some positive traction on Tuesday and was being supported by a combination of factors. The US dollar was back in demand and drove some haven flows amid worries about the continuous rise in the number of new coronavirus cases globally.

Meanwhile, concerns that second wave of COVID-19 infections might trigger renewed lockdown measures dampened prospects for a swift recovery in fuel demand. This, in turn, led to a modest pullback in oil prices, which undermined demand for the commodity-linked currency – the loonie – and remained supportive of the USD/CAD pair's uptick.

The Canadian dollar remained on the defensive and failed to gain any respite following the release of the better-than-expected domestic GDP report, which showed that the economy contracted by 11.6% in April. The reading was better than consensus estimates pointing to a reading of -13% but marked steeper contraction as compared to -7.5% in March.

Market participants now look forward to the US economic docket, featuring the release of Chicago PMI and the Conference Board's Consumer Confidence Index. Later during the US session, the Fed Chair Jerome Powell's testimony before the House Financial Services Committee might contribute towards producing some meaningful trading opportunities.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3686
Today Daily Change 0.0027
Today Daily Change % 0.20
Today daily open 1.3659
 
Trends
Daily SMA20 1.3548
Daily SMA50 1.3807
Daily SMA100 1.3799
Daily SMA200 1.349
 
Levels
Previous Daily High 1.3705
Previous Daily Low 1.3647
Previous Weekly High 1.3716
Previous Weekly Low 1.3486
Previous Monthly High 1.4173
Previous Monthly Low 1.3715
Daily Fibonacci 38.2% 1.3669
Daily Fibonacci 61.8% 1.3683
Daily Pivot Point S1 1.3636
Daily Pivot Point S2 1.3613
Daily Pivot Point S3 1.3578
Daily Pivot Point R1 1.3694
Daily Pivot Point R2 1.3728
Daily Pivot Point R3 1.3751

 

 

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