USD/CAD consolidates below 1.2100 ahead of US PCE data, budget proposal

USD/CAD gains momentum in the early European sessions
Firm US Treasury yields lift demand for the US dollar.
Rising commodity prices support loonie.

Rekha Chauhan Independent Analyst

The buying opportunities in the US dollar pushed USD/CAD higher on Friday. The pair opened lower, albeit recovered swiftly to the session’s high at 1.2089 while comprising a 30-pip movement.

At the time of writing, the USD/CAD pair is trading at 1.2088, up 0.2% for the day.

The US Dollar Index (DXY), which indicates the performance of the greenback against six majors, rose from 4-month lows and stood at 90.04 with 0.14% gains. The US 10-year benchmark rose to 1.61% with 0.4% gains for the day.

The upbeat labor market data with weekly Initial Jobless Claims falling to 406K, well below the market expectation of 426K, lifted market sentiment.

Meanwhile, US President Joe Biden proposes a $6 trillion US budget for the 2022 fiscal year. However, US Treasury Secretary Jenet Yellen urged a more expansive fiscal policy and not to burden the next generation with taxes.

On the other hand, the Canadian dollar is supported by steady crude oil prices. On the economic data front, Manufacturing Sales retreated by 1.1% in April.

For now, traders are gearing up for a slew of economic data releases: US Personal Income/Spending Data, Goods Trade Balance, Personal Consumption Expenditure, Chicago PMI and Michigan Consumer Expectations.

If PCE data align with the Fed's ambitious inflation target of 2%, then it might prompt policymakers to tweak their accommodative policy sooner than expected.

USD/CAD Additional Levels

USD/CAD

Overview
Today last price	1.2088
Today Daily Change	0.0023
Today Daily Change %	0.19
Today daily open	1.2065

Trends
Daily SMA20	1.2136
Daily SMA50	1.237
Daily SMA100	1.252
Daily SMA200	1.2791

Levels
Previous Daily High	1.2142
Previous Daily Low	1.2057
Previous Weekly High	1.2144
Previous Weekly Low	1.2013
Previous Monthly High	1.2654
Previous Monthly Low	1.2266
Daily Fibonacci 38.2%	1.2089
Daily Fibonacci 61.8%	1.2109
Daily Pivot Point S1	1.2034
Daily Pivot Point S2	1.2002
Daily Pivot Point S3	1.1948
Daily Pivot Point R1	1.2119
Daily Pivot Point R2	1.2173
Daily Pivot Point R3	1.2205

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

AUD/USD consolidates above 0.7200 after hot Chinese CPI data

AUD/USD is extending its consolidative price action above 0.7200 during the Asian session on Wednesday, uninspired by hot Chinese CPI and PPI data. Meanwhile, rising RBA rate-hike bets act as a tailwind for the Aussie amid Yen-inspired US Dollar weakness. Traders await the release of US inflation figures later in the week for fresh impetus.

USD/JPY stays in red near 153.50 amid aggressive BoJ hike bets

USD/JPY keeps the bearish tone intact at around 153.50 during European trading hours on Wednesday. A strong Reuters Tankan business survey adds to the case for continued BoJ policy normalisation and supports the Japanese Yen. This, along with a broadly weaker US Dollar, keeps the pair close to a nearly seven-month low set on Tuesday.

Gold recovers further from one-week low, retakes $4.400 amid sustained USD selling

Gold builds on its intraday recovery from a one-week low and reclaims the $4,400 mark heading into the European session on Wednesday. The commodity, for now, seems to have snapped a three-day losing streak amid a weaker US Dollar, which remains depressed near its lowest level in over two weeks amid the Bank of Japan-inspired rally in the Japanese Yen.

Pi Network's rebound holds as momentum improves

Pi Network (PI) extends its recovery on Wednesday, trading above $0.098 after finding support around the 50-day Exponential Moving Average earlier this week. The rebound comes as the Pi Core Team highlights the importance of strengthening its developer ecosystem to expand application-level utility across the network.

Oil, Apple and JPY in focus

Oil prices are rising on Wednesday as tit-for-tat strikes between Iran and the US threaten oil supplies as the two sides battle for control of the Strait of Hormuz. Stock futures have switched their attention from a strong earnings season to the challenges ahead, including a 10-year Treasury yield that is hovering close to the 4.8% level.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.