USD/CAD could take another run at the low 1.33 zone if US data reports comply – Scotiabank

FXStreet Insights Team FXStreet

The CAD is marginally firmer against the USD on the day but remains confined to a now familiar trading range above 1.33. Economists at Scotiabank analyze USD/CAD outlook.

Limited scope for counter-trend corrections

The positive risk backdrop suggests USD/CAD could take another run at the low 1.33 zone if US data reports comply. But, after snapping higher yesterday – the first net gain in the USD in nine sessions – pressure for some additional consolidation in USD/CAD may be building absent clear, additional CAD gains soon.

Underlying trend dynamics continue to lean USD-bearish, with DMI oscillators aligned negatively for the USD across intraday, daily and weekly studies. This situation typically implies limited scope for counter-trend corrections and ongoing downside pressure on the USD.

Spot’s extended hesitation above the key 1.33 support zone risks driving some modest gains in the USD in the short run at least, however.

See – US CPI Banks Preview: Headline inflation is moderating, but underlying persists

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold surrenders some gains, back below $5,000

Gold is giving away part of its earlier gains on Thursday, receding to the sub-$5,000 region per troy ounce. The precious metal is finding support from renewed geopolitical tensions in the Middle East and declining US Treasury yields across the curve in a context of further advance in the Greenback.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

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.

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.