USD/CAD drops below 1.33 on crude oil recovery

WTI climbs above $55 ahead of OPEC report, Baker Hughes data.
US Dollar Index clings to gains above 98 mark.
Coming up: University of Michigan Consumer Confidence Index and housing data from US.

Eren Sengezer FXStreet

The USD/CAD pair fluctuated in a tight range a little above the 1.33 handle on Thursday but came under modest bearish pressure today with the commodity-related Loonie gathering strength on the back of rising crude oil prices. As of writing, the pair was down 0.13% on a daily basis at 1.3290.

Crude oil rebounds on Friday

Before the OPEC releases the August Oil Market report at 11:20 GMT, the barrel of West Texas Intermediate is up 1.5% on the day at $55.50. The fact that European equity indexes and the 10-year US Treasury bond are posting decisive recovery gains on Friday points out to an improved market sentiment, which helps crude oil gain traction. Later in the day, the weekly Baker Hughes rig data will also be looked upon for fresh impetus.

On the other hand, the Greenback continues to outperform its major rivals with the US Dollar Index (DXY) pushing higher for the fourth straight day. As the DXY is clinging to its daily gains at 98.27, the pair struggles to edge lower.

Later in the day, the University of Michigan's Consumer Confidence Index, which is expected to retreat to 97.2 in August from 98.4, and Housing Starts Change and Building Permits data from the US will be looked upon for fresh impetus.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3289
Today Daily Change	-0.0025
Today Daily Change %	-0.19
Today daily open	1.3314

Trends
Daily SMA20	1.3203
Daily SMA50	1.3183
Daily SMA100	1.33
Daily SMA200	1.3312

Levels
Previous Daily High	1.334
Previous Daily Low	1.3286
Previous Weekly High	1.3345
Previous Weekly Low	1.3178
Previous Monthly High	1.3215
Previous Monthly Low	1.3016
Daily Fibonacci 38.2%	1.3306
Daily Fibonacci 61.8%	1.3319
Daily Pivot Point S1	1.3287
Daily Pivot Point S2	1.3259
Daily Pivot Point S3	1.3233
Daily Pivot Point R1	1.3341
Daily Pivot Point R2	1.3367
Daily Pivot Point R3	1.3395

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold hangs near one-week low; looks to FOMC Minutes for fresh impetus

Gold is consolidating just above the $4,850 level, having touched a one-week low on Tuesday, amid mixed cues. Signs of progress in US–Iran talks dent demand for the traditional safe-haven bullion. Meanwhile, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders also seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.