USD/CAD consolidates in a range above 1.2100 mark, US CPI awaited

A combination of supporting factors failed to assist USD/CAD to build on the overnight bounce.
Investors preferred to wait on the sidelines ahead of the latest US consumer inflation figures.

Haresh Menghani FXStreet

The USD/CAD pair lacked any firm directional bias and remained confined in a narrow band through the first half of the European session. The pair was last seen trading around the 1.2110-15 region, nearly unchanged for the day.

The pair struggled to capitalize on the previous day's goodish rebound from the vicinity of mid-1.2000s, or weekly lows and witnessed a subdued/range-bound price action on Thursday. That said, a combination of factors extended some support and assisted the USD/CAD pair to hold steady above the 1.2100 mark.

The US dollar gained follow-through traction amid some repositioning trade ahead of the US consumer inflation figures, due later during the early North American session. Apart from this, a modest pickup in the US Treasury bond yields further benefitted the greenback and acted as a tailwind for the USD/CAD pair.

On the other hand, a softer tone in the oil market undermined the commodity-linked loonie and was seen as another factor lending support to the USD/CAD pair. WTI crude oil witnessed some profit-taking after Wednesday's EIA report indicated weaker-than-expected fuel demand at the start of the summer driving season in the US.

Investors, however, seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines ahead of the US consumer inflation figures. The CPI report will be an important macro data that would set the tone for the June FOMC meeting and influence the USD. This, in turn, might provide a fresh directional impetus to the USD/CAD pair.

Technical levels to watch

USD/CAD

Overview
Today last price	1.2112
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	1.2111

Trends
Daily SMA20	1.2086
Daily SMA50	1.2282
Daily SMA100	1.2464
Daily SMA200	1.2744

Levels
Previous Daily High	1.2118
Previous Daily Low	1.2058
Previous Weekly High	1.2133
Previous Weekly Low	1.2007
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2095
Daily Fibonacci 61.8%	1.2081
Daily Pivot Point S1	1.2074
Daily Pivot Point S2	1.2037
Daily Pivot Point S3	1.2015
Daily Pivot Point R1	1.2133
Daily Pivot Point R2	1.2155
Daily Pivot Point R3	1.2192

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold traders seem noncommittal below $4,350; eyes Fed rate decision

Gold clings to modest intraday gains through the first half of the European session, albeit it lacks follow-through buying and remains below $4,350. The US Dollar eases from a two-week high amid some profit-taking, offering support to the commodity. Traders, however, seem hesitant to place aggressive directional bets and opt to wait on the sidelines heading into the key central bank event risk.

Cardano's bearish breakout warns of a 15% downside risk

Cardano (ADA) hovers around $0.1900 at press time on Wednesday after a 6% decline the previous day, breaking below a crucial support level. Declining on-chain activity across the Cardano ecosystem, with reduced transaction count and Real Economic Value (REV), suggests waning user demand.

Fed decision in focus

Starting with the most important, the Fed decision. Heading into the event, data showed a rather punchy US August jobs report, which, you will likely recall, triggered a hawkish Fed rate repricing in rates markets. However, the recent US August CPI print mattered more.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.