USD/CAD consolidates in a range above mid-1.2400s

Haresh Menghani FXStreet

• Subdued USD action fails to provide fresh impetus.
• Bullish oil prices further capping the up-move.

The USD/CAD pair now seems to have entered a consolidation phase and was seen oscillating within a narrow trading range above mid-1.2400s.

The pair's overnight up-move stalled ahead of the key 1.2500 psychological mark, with a combination of factors failing to assist the pair to build on its modest recovery move from Friday's over 3-month lows.

A modest US Dollar retracement, primarily led by a sharp Yen appreciation, did little to provide any fresh impetus. This coupled with the prevailing strong bullish sentiment around oil markets, WTI crude oil hitting its highest level since December 2014, underpinned the commodity-linked currency - Loonie and further collaborated towards keeping a lid on any additional gains for the major.

It would now be interesting to see if the pair is able to catch any fresh bids or resumes with its depreciating slide amid growing prospects for a BOC rate hike move next week and absent market moving economic releases.

Technical levels to watch

Immediate strong resistance remains near the 1.2500 handle, above which the recovery move could get extended towards 1.2530-35 supply zone. On the flip side, follow-through weakness back below mid-1.2400s could drag the pair back towards retesting the 1.2400 handle.

Author

Haresh Menghani

FXStreet

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

GBP/USD holds losses below 1.3550 after weak UK jobs data

GBP/USD holds losses below 1.3550 in European trading hours on Tuesday. The UK ILO Unemployment Rate held steady at 4.9% in the three months to June, against a forecast of 4.8%, while Employment Change arrived at 83K in the same period versus 147K previous. Weak UK labor data keep the British Pound under pressure, driving the pair lower.

EUR/USD stays below 1.1600 despite upbeat sentiment data

EUR/USD struggles to gain traction and trades below 1.1600 in the European session on Tuesday, even after the data from the Eurozone and Germany highlighted improving economic sentiment in August. The US Dollar (USD) benefits from the risk-averse market atmosphere as tensions in Middle East remain high, making it difficult for the pair to turn north.

Gold sticks to losses below $4,400 as USD recovers further from two-month low

Gold remains depressed below the $4,400 mark through the first half of the European session, snapping a two-day winning streak amid a broadly firmer US Dollar. Inflation risks stemming from higher oil prices back the case for at least one interest rate hike by the US Federal Reserve in 2026.

Pi Network holds steady amid app studio costs surge to push user adoption

Pi Network extends a consolidation range capped below $0.0900 holding above the $0.0839 support level. PI token remains under pressure as the Core Team pushes for real user adoption by raising costs for AI-powered app creation, effective from August 24. Leverage-linked risk exposure eases as Open Interest declines despite an increase in social interest.

Fiscal concerns and doubts on Fed independence send US yields to long-term highs

US Treasury yields keep rising across the curve this week, with the yield for the 30-year Treasury bond reaching its highest level since 2007, during the global financial crisis, at 5.33% so far on Monday. A mix of concerns about the ballooning US fiscal deficit and growing doubts about the Federal Reserve’s Independence are increasing pressure on US Government Bonds.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.