- Crude oil recovery loses momentum on Thursday.
- US Dollar Index advances to 95.40 area.
- Building permits rise more than expected in Canada.
The USD/CAD pair, which closed the previous six days in the negative territory, is clinging to modest gains on Thursday as the greenback continues to correct yesterday's sharp fall. As of writing, the pair was up 0.15% on the day at 1.3235.
Earlier today, the data published by Statistics Canada revealed that building permits in Canada increased by 2.6% on a monthly basis in November to surpass the market expectation for a 0.5% decline. However, the commodity-sensitive loonie failed to take advantage of this data as the barrel of West Texas Intermediate lost its bullish momentum and now looks to snap its 7-day winning streak.
On the other hand, despite the dovish tone seen in the FOMC's December meeting minutes and cautious remarks from Fed officials, the greenback was able to stage a rebound to help the pair preserve its daily gains. Ahead of FOMC Chairman Powell's speech later in the session, the DXY is staying calm near the 95.40 level.
With no other data from Canada left in the remainder of the week, the greenback's market valuation is likely to remain as the sole driver of the pair's price action. Tomorrow, December inflation data from the U.S. will be watched closely by the market participants.
Previewing the data, "Inflation at or near the 2% target and 3% economic growth gives the Fed leeway on rates. The minutes of the December 18-19th FOMC released on Wednesday noted that many participants thought that the bank could afford patience on rates and that future policy should be guided by incoming data," said FXStreet senior Analyst Joseph Trevisani.
Key technical levels
USD/CAD
Overview:
Today Last Price: 1.3236
Today Daily change: 20 pips
Today Daily change %: 0.151%
Today Daily Open: 1.3216
Trends:
Previous Daily SMA20: 1.3514
Previous Daily SMA50: 1.335
Previous Daily SMA100: 1.3183
Previous Daily SMA200: 1.3082
Levels:
Previous Daily High: 1.3284
Previous Daily Low: 1.318
Previous Weekly High: 1.3666
Previous Weekly Low: 1.338
Previous Monthly High: 1.4134
Previous Monthly Low: 1.316
Previous Daily Fibonacci 38.2%: 1.3219
Previous Daily Fibonacci 61.8%: 1.3244
Previous Daily Pivot Point S1: 1.3169
Previous Daily Pivot Point S2: 1.3123
Previous Daily Pivot Point S3: 1.3066
Previous Daily Pivot Point R1: 1.3273
Previous Daily Pivot Point R2: 1.333
Previous Daily Pivot Point R3: 1.3376
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
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.