- The Loonie falls for the third consecutive day amid mixed-risk sentiment and unmoved oil prices.
- In the overnight session, the USD/CAD remained subdued around the 1.2775-1.2829 range.
- Fed policymakers favoring a faster taper: Bullard, Bostic, Mester, and Powell.
The US/CAD extends its gains for the third day in a row, amidst a mixed bag market sentiment, modestly rising 0.02%, trading at 1.2817 at the time of writing. European indices are falling, following the Asian equity futures path, whereas, In the US, major stock indices are rising as traders keep assessing the impact of the COVID-19 Omicron variant in the global economy.
The USD/CAD remained range-bound in the overnight session, trading between the 1.2775-1.2829 range, fluctuating between the daily central pivot point and the December 1 swing high. That, in part, as risk-off market sentiment, dented investors’ appetite for riskier assets; also, crude oil prices remained subdued ahead of the OPEC+ meeting. As Wall Street opened, USD/CAD bulls pushed the pair to a new daily high at 1.2835, but the move was faded, retreating towards the 1.2810s area.
Fed officials add to the hawkish list
On Wednesday, Fed policymakers reinforced the need for a faster taper. Fed’s Chair Jerome Powell said that inflation is linked to the pandemic, and elevated prices have been stubbornly persistent. Further noted that “we need to move on from the word transitory” and reinforced the strength of the US economy.
In the same posture, Cleveland Fed President Loretta Mester said, “making the taper faster is definitely buying insurance and optionality so that if inflation doesn’t move back down significantly next year, we’re in a position to be able to hike if we have to.” She noted that recent data “have come in supportive of that case, so I’m very open to considering a faster pace of tapering.”
That said and for those who like to keep the score, Bullard, Bostic, Mester, and Powell favor a faster QE’s reduction, which would aim to end in the first quarter of 2022.
Meanwhile, Western Texas Intermediate (WTI) US crude oil benchmark falls almost 1%, trading at $64.99, underpinning the USD/CAD direction, amid some US Dollar weakness.
In the macroeconomic docket, there’s nothing from Canada to report. On the US front, Initial Jobless Claims for the week ending on November 26 rose to 222K, better than the 240K forecasted, while the Continuing Jobless Claims for the week ending on November 18 rose to 1.956M, lower than 2M for the first time, since March 2020.
During the day, Fedspeaking would be the driver of the day, with Bostic, Quarles, Daly, and Barkin crossing the wires.
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 trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold reaches to all-time highs near $2,230, US PCE eyed
Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.