USD/CAD drills weekly low near 1.3550 as Oil price recovers, US Dollar dribbles, PMIs eyed


Share:
  • USD/CAD remains pressured at the lowest levels in seven days.
  • US Dollar struggles on cautious optimism, mixed Fed concerns.
  • Upbeat Canada GDP teases Loonie buyers; Oil benefits from sluggish USD, mildly positive sentiment.
  • US/Canada PMIs, US employment clues eyed for clear directions.

USD/CAD holds lower ground at the weekly bottom as it extends the previous day’s fall amid a slightly upbeat risk profile and firmer Oil price, not to forget the sluggish US Dollar. That said, the Loonie pair prints mild losses around 1.3565 by the press time of early Thursday morning in Europe.

US Dollar Index (DXY) struggles to defend the weekly gains around 104.30, despite recently picking up bids, as mixed US data and Federal Reserve (Fed) talks flag concerns that the US central bank has limited upside room for the rates. With this in mind, allowed Wall Street Journal’s (WSJ) Nick Timiraos to suggest that the Federal Open Market Committee (FOMC) is likely to hold interest rates steady in June.

While US statistics were mostly unimpressive, Canada’s first quarter (Q1) Gross Domestic Product (GDP) offered a positive surprise to the Loonie buyers and drowned the USD/CAD pair the previous day. That said, the Canadian Q1 GDP rose to 0.8% QoQ versus 0.4% expected and 0.0% prior.

Elsewhere, the US Republican-controlled House of Representatives recently passed the debt-ceiling bill and favored the market’s optimism as the ruling Democrats dominate in the Senate and can easily avoid the default now. The same news exerts downside pressure on the US Dollar and the USD/CAD price of late.

Furthermore, WTI crude oil rises 1.22% on a day to around $68.50 as buyers return from the lowest levels in a month while snapping the two-day downtrend. It’s worth noting that the surprise build in the Oil inventories, per the industry reports, fails to weigh on the black gold ahead of this weekend’s OPEC+ meeting. The reason could be linked to the market sentiment, the recently firmer China Caixin Manufacturing PMI and the US Dollar’s failure to rise much.

Against this backdrop, S&P500 Futures print mild gains whereas the US Treasury bond yields rebound from weekly low.

Looking ahead, preliminary readings of the US and Canadian PMIs for May will join the US ADP Employment Change and vote on the bill to avoid the US default in the US Senate to direct intraday moves of the USD/CAD pair.

Technical analysis

A daily closing below the three-week-old rising support line, now immediate resistance around 1.3585, directs USD/CAD toward a convergence of the 50 and 100-DMA, around 1.3515-10.

Additional important levels

Overview
Today last price 1.3567
Today Daily Change -0.0007
Today Daily Change % -0.05%
Today daily open 1.3574
 
Trends
Daily SMA20 1.3507
Daily SMA50 1.3518
Daily SMA100 1.3517
Daily SMA200 1.3502
 
Levels
Previous Daily High 1.3651
Previous Daily Low 1.3569
Previous Weekly High 1.3655
Previous Weekly Low 1.3485
Previous Monthly High 1.3655
Previous Monthly Low 1.3315
Daily Fibonacci 38.2% 1.3601
Daily Fibonacci 61.8% 1.362
Daily Pivot Point S1 1.3545
Daily Pivot Point S2 1.3516
Daily Pivot Point S3 1.3464
Daily Pivot Point R1 1.3627
Daily Pivot Point R2 1.368
Daily Pivot Point R3 1.3709

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD loses traction, retreats below 1.0600

EUR/USD loses traction, retreats below 1.0600

EUR/USD lost its recovery momentum and declined below 1.0600 in the American session on Friday, erasing a portion of its daily gains in the process. Nevertheless, the risk-positive market atmosphere after PCE inflation data helps the pair limit its losses.

EUR/USD News

GBP/USD turns negative on the day below 1.2200

GBP/USD turns negative on the day below 1.2200

GBP/USD reversed its direction and slumped below 1.2200 in the American session on Friday after rising above 1.2270 earlier in the day. Position readjustments and profit-taking on the last trading day of the quarter seems to be weighing on Pound Sterling.

GBP/USD News

Gold reverses direction, drops below $1,860

Gold reverses direction, drops below $1,860

Following a steady rebound toward $1,880 on Friday, Gold price made a sharp U-turn and turned negative on the day near $1,860. Although the 10-year US T-bond yield is down more than 1%, XAU/USD struggles to find demand on the last day of Q3.

Gold News

Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high

Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high

Polkadot price, in nearly two years, has shed 92.91% from its all-time high of $55.09. The massive downswing in DOT has pushed it down to levels that were last seen in October 2020. Hence, the chances of this altcoin forming a bottom and rallying are high. 

Read more

Earnings beat triggers Nike to spike 9%

Earnings beat triggers Nike to spike 9%

Nike (NKE) stock has surged over 9% in Friday’s premarket, climbing above $98 per share, following late Thursday’s fiscal first-quarter earnings release. Nike beat pessimistic earnings expectations by more than 23% and hiked its dividend by 9%.

Read more

Forex MAJORS

Cryptocurrencies

Signatures