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


Today last price 1.317
Today Daily Change -0.0010
Today Daily Change % -0.08
Today daily open 1.318
Daily SMA20 1.3257
Daily SMA50 1.3214
Daily SMA100 1.3232
Daily SMA200 1.3278
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



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