USD/CAD consolidates in a range below 1.3500 handle, US GDP report awaited


   •  A modest USD pullback from near two-year tops fails to provide any fresh bullish impetus.
   •  Weaker oil prices undermine Loonie and seemed to help limit the downside, at least for now.
   •  Investors’ focus remains glued to the important release of US Q1 GDP report later today.

The USD/CAD pair extended its sideways consolidative price action and remained confined in the post-BoC trading range, just below the key 1.3500 psychological mark.

With investors looking past the recent dovish tilt by the Bank of Canada, a combination of diverging forces failed to provide any meaningful impetus to the major and led to a subdued/range-bound price action through the early European session on the last trading day of the week. 

Despite the overnight upbeat release of the US durable goods orders data, which surpassed even the most optimistic estimates, the US Dollar failed to capitalize on the recent bullish momentum, rather witnessed a modest pullback from the highest level since May 2017 and eventually capped the upside for the major.

However, a weaker tone surrounding crude oil prices, now down around 0.5% and slipping below the key $65.00/barrel mark, undermined demand for the commodity-linked currency - Loonie and turned out to be the only factor helping limit any sharp corrective slide, at least for the time being.

Traders also seemed reluctant to place any aggressive bets ahead of today's key release of the advance US Q1 GDP report, which might influence market expectations about the Fed's outlook when it announces its latest monetary policy update next Wednesday and help determine the pair's near-term trajectory.

Technical levels to watch

The 1.3500 round figure mark, closely followed by the post-BoC swing high, around the 1.3520 level, might act as immediate barriers, above which the pair seems all set to aim towards reclaiming the 1.3600 handle with some intermediate resistance near the 1.3565-70 region.

On the flip side, immediate support is pegged near the 1.3460-50 region, which if broken might prompt some aggressive long-unwinding trade and accelerate the fall further towards challenging the 1.3400 round figure mark en-route the 1.3375-70 horizontal support.
 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Recovery could continue in the short-term

The EUR/USD pair has recovered some ground Friday, ending the week with modest gains at around 1.1050. The American dollar extended its slide as speculative interest couldn’t find a reason to keep on buying it. 

EUR/USD News

GBP/USD: Brexit hopes maintain Sterling afloat

The GBP/USD pair hit a daily high of 1.2918 on Friday, boosted by news indicating that the  Brexit Party has decided to step down from 43 additional constituencies where Labour won, facilitating the way for a Conservative majority.

GBP/USD News

USD/JPY: Pressuring resistance but without enough strength

The USD/JPY pair trimmed part of its weekly losses last Friday, closing the week in the red at around 108.80. Demand for safe-haven assets eased despite persistent tensions between the US and China.

USD/JPY News

Gold looks to close week with small gains below $1,470

The precious metal struggled to find demand on Friday as the upbeat market mood on renewed hopes of the United States and China reaching a trade deal to avoid a tariff hike in December caused investors to move away from safe havens.

Gold News

Crypto Today: Playing with the thin red line

BTC/USD has fallen below $8,500 during the Asian trading session. A close below this support level would put $7,500 on the trading table. ETH/USD is moving below the 50-period exponential moving average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures