USD/CAD comes close to annual high near 1.3870 as oil retreats


  • USD/CAD sets to recapture annual high around 1.3870 despite the USD Index coming under pressure.
  • Monthly US core PCE accelerated at an expected pace of 0.3% in September against 0.1%.
  • Oil prices retreat from $85.00 despite escalating Middle East tensions.

The USD/CAD pair comes closer to an annual high around 1.3870 as global oil prices retreat after facing stiff barricades above the crucial resistance of $85.00. The Lonnie asset gains almost 0.15%, at the time of writing, despite a sell-off in the US Dollar. The Loonie asset strengthened despite a sharp fall in the US Dollar Index (DXY) indicating that the Canadian Dollar is significantly weak.

The S&P500 opens on a positive note but struggles for a firm footing as the broader market mood is risk-off amid a focus on Middle East tensions. Investors see further escalation in Mid-East conflicts as the Pentagon reported that the US army carried out air strikes on bases in eastern Syria.

The USD Index dropped vertically to near 106.30 as the steady United States core Personal Consumption Expenditure (PCE) price index report is insufficient to impact the widely anticipated unchanged monetary policy decision by the Federal Reserve (Fed) on November 1. Monthly US core PCE accelerated at an expected pace of 0.3% in September against 0.1% growth in August. The annual core PCE rose by 3.7% but decelerated from the August reading of 3.9%.

As per the CME Fedwatch tool, traders see the Fed keeping interest rates unchanged at 5.25-5.50% almost certain. The odds of one more interest rate increase in any of the two remaining monetary policy meetings in 2023 have dipped sharply to 20%.

Meanwhile, investors continue to dump the Canadian Dollar amid declining oil prices. It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices support the Canadian Dollar.

USD/CAD

Overview
Today last price 1.3846
Today Daily Change 0.0015
Today Daily Change % 0.11
Today daily open 1.3831
 
Trends
Daily SMA20 1.3683
Daily SMA50 1.36
Daily SMA100 1.3439
Daily SMA200 1.3477
 
Levels
Previous Daily High 1.3844
Previous Daily Low 1.379
Previous Weekly High 1.3741
Previous Weekly Low 1.3606
Previous Monthly High 1.3694
Previous Monthly Low 1.3379
Daily Fibonacci 38.2% 1.3823
Daily Fibonacci 61.8% 1.3811
Daily Pivot Point S1 1.3799
Daily Pivot Point S2 1.3768
Daily Pivot Point S3 1.3745
Daily Pivot Point R1 1.3853
Daily Pivot Point R2 1.3876
Daily Pivot Point R3 1.3907

 

 

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