USD/CAD continues to consolidate Wednesday's losses near 1.3170


  • WTI recovers above $59 on easing global energy demand concerns.
  • US Dollar Index posts modest gains above 97.
  • Coming up: Weekly Jobless Claims and PPI data from US.

The USD/CAD pair lost 60 pips on Wednesday after the greenback came under strong selling pressure amid Federal Open Market Committee (FOMC) Chairman Jerome Powell's dovish comments. With the market action turning subdues in the absence of significant macroeconomic drivers on Thursday, the pair has gone into a consolidation phase and was last seen moving sideways near 1.3170, where it closed the previous day.

Powell's remarks hurt USD

Although the FOMC kept its policy rate unchanged within the target range of 1.5% - 1.75% as expected, Powell made it clear that he would have to see a "significant and persistent" move up in inflation to consider a rate hike to weigh on the greenback. 

Reviewing the FOMC event, "our base case remains that the Fed will deliver a fourth cut some time during the spring, which is, however, not a high conviction call," said Danske Bank analysts. "Here we probably diverge from consensus amongst Fed watchers and are more aligned with market pricing (a full cut is priced in next year).”

Ahead of the Producer Price Index (PPI) and the weekly Jobless Claims data from the United States, the US Dollar Index is up 0.12% on the day at 97.20.

On the other hand, the barrel of West Texas Intermediate is posting modest daily gains above the $59 mark and helping the CAD stay resilient against the USD. The International Energy Agency (IEA) in its monthly report on Thursday revealed that the global oil demand rose by 900,000 barrels per day on a yearly basis in the third quarter of 2019 to register the highest annual growth in a year. 

Technical levels to watch for

USD/CAD

Overview
Today last price 1.317
Today Daily Change -0.0010
Today Daily Change % -0.08
Today daily open 1.318
 
Trends
Daily SMA20 1.3257
Daily SMA50 1.3214
Daily SMA100 1.3232
Daily SMA200 1.3278
 
Levels
Previous Daily High 1.3242
Previous Daily Low 1.3162
Previous Weekly High 1.3322
Previous Weekly Low 1.3158
Previous Monthly High 1.3328
Previous Monthly Low 1.3114
Daily Fibonacci 38.2% 1.3193
Daily Fibonacci 61.8% 1.3211
Daily Pivot Point S1 1.3148
Daily Pivot Point S2 1.3116
Daily Pivot Point S3 1.3069
Daily Pivot Point R1 1.3227
Daily Pivot Point R2 1.3274
Daily Pivot Point R3 1.3306

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops to lows below 1.1650 amid resurgent dollar's demand

EUR/USD is off the highs, back in the red below 1.1650, as the US dollar regains ground across the board. The greenback's haven demand resurfaced amid mixed performance in the European indices. US Durable Goods data in focus. 

EUR/USD News

GBP/USD reverses below 1.2750 amid US dollar comeback

GBP/USD extends the retreat below 1.2750, as the US dollar makes a comeback amid a cautious market mood. The cable briefly regained 1.28 after an EU official reportedly said that the tide may be turning despite no big breakthroughs. 

GBP/USD News

Gold on the defensive, below $1870 level amid stronger USD

Gold struggled to capitalize on the previous day’s modest bounce from two-month lows. The prevalent USD buying interest capped the upside for the dollar-denominated commodity. A turnaround in the equity markets, sliding US bond yields might help limit deeper losses.

Gold News

Binance blacklisted in Russia

The Russian Roskomnadzor (the Federal Service for Supervision of Communications, Information, Technology, and Mass Media) added the cryptocurrency exchange Binance to the blacklist. 

Read more

WTI: Sellers continue to lurk near $40.80

WTI (futures on NYMEX) turns south towards the $40 mark in the European session, having faced rejection above $40.50 on several occasions.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures