- USD/CAD is trading in a relatively tight range on Wednesday.
- US Dollar Index stays in the green ahead of CPI data.
- WTI clings to modest gains after renewing multi-month highs.
The USD/CAD pair lost more than 70 pips on Tuesday pressured by the broad USD weakness and rising crude oil prices. With the greenback regathering its strength on Wednesday, the pair staged a modest rebound and was last seen gaining 0.17% on the day at 1.2730.
Eyes on US CPI data, T-bond yields
On Tuesday, the US Dollar Index (DXY) fell sharply in the late American session after the US bond auction triggered a sharp decline in yields. The DXY snapped a four-day winning streak and lost 0.4%. However, the cautious market mood helped the USD stay resilient against its rivals and the DXY is currently up 0.23% at 90.30.
Later in the session, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) figures for December. There won't be any significant macroeconomic data releases featured in the Canadian economic docket.
Additionally, investors will keep a close eye on US T-bond yields' performance, which has been the primary catalyst behind the USD's market valuation since the beginning of the year.
In the meantime, crude oil prices regained traction following Monday's technical correction and the barrel of West Texas Intermediate (WTI) reached its highest level since February at $53.90 before going into a consolidation phase. At the moment, the WTI is up 0.32% at $53.43, helping the commodity-related loonie limit its losses.
Technical levels to watch for
|Today last price||1.2727|
|Today Daily Change||0.0013|
|Today Daily Change %||0.10|
|Today daily open||1.2714|
|Previous Daily High||1.2792|
|Previous Daily Low||1.2711|
|Previous Weekly High||1.2798|
|Previous Weekly Low||1.263|
|Previous Monthly High||1.301|
|Previous Monthly Low||1.2688|
|Daily Fibonacci 38.2%||1.2742|
|Daily Fibonacci 61.8%||1.2761|
|Daily Pivot Point S1||1.2686|
|Daily Pivot Point S2||1.2658|
|Daily Pivot Point S3||1.2605|
|Daily Pivot Point R1||1.2766|
|Daily Pivot Point R2||1.2819|
|Daily Pivot Point R3||1.2847|
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.