USD/CAD corrects from 5-week tops, weakens farther below 1.3100 handle

Haresh Menghani FXStreet

• Investors looked past Friday’s softer Canadian inflation and retail sales data.
• Subdued USD demand fails to build on the momentum beyond 1.3100 mark.
• Market focus shifts to this week’s key event risk – BoC monetary policy decision.

After an initial uptick to the 1.3120 region, the USD/CAD pair met with some fresh supply and has now reversed Friday's up-move to five-week tops.

With investors looking past weaker Canadian inflation and retail sales data, a subdued US Dollar price-action failed to assist the pair to build on its momentum beyond the 1.3100 handle.

Deteriorating US-Saudi relations, following the disappearance of journalist Jamal Khashoggi, coupled with a mildly softer tone around the US Treasury bond yields kept the USD bulls on the defensive at the start of a new trading week.

Adding to this, some renewed pickup in crude oil prices underpinned demand for the commodity-linked currency - Lonnie and further collaborated to the pair's modest retracement through the early European session on Monday.

Despite a modest pull-back, the pair has managed to hold its neck above 100-day SMA, which has been acting as a key hurdle over the past one month or so and hence, it would be prudent to wait for a strong follow-through selling before confirming that the pair might have topped out in the near-term.

In absence of any major market moving economic releases, the pair remains at the mercy of broader market sentiment surrounding the buck and oil price dynamics ahead of this week's key event risk - the latest BoC monetary policy update on Wednesday.

Technical levels to watch

Immediate support is now pegged near the 1.3070-65 region (100-DMA), below which the pair is likely to accelerate the corrective slide towards 1.3030-25 support area en-route the key 1.30 psychological mark.

On the flip side, the 1.3120-30 region now seems to have emerged as an immediate strong hurdle, which if cleared should assist the pair to aim towards reclaiming the 1.3200 round figure mark.

Author

Haresh Menghani

FXStreet

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

EUR/USD retakes 1.1800 on renewed USD weakness

EUR/USD gains ground after three days of losses, re-attempting 1.1800in the European trading hours on Thursday. The US Dollar sees fresh selling interest across the board, despite hawkish Fed Minutes, as the market mood improves and supports the pair. US Jobless Claims data, Fedspeak and geopolitics remain in focus.

GBP/USD recovers above 1.3500 amid better mood

GBP/USD finds fresh demand and rises back above 1.3500 in the European session on Thursday. Improving risk sentiment and renewed US Dollar weakness are helping the pair recover ground ahead of mid-tier US data releases and Fedspeak.

Gold clings to gains above $5,000 amid safe-haven flows and Fed rate cut bets

Gold sticks to modest intraday gains, above the $5,000 psychological mark, through the first half of the European session, though it lacks bullish conviction amid mixed cues. The third round of US-mediated negotiations between Ukraine and Russia concluded in Geneva on Wednesday without any major breakthrough.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.