- Fed's officials' comments weigh on the USD on Friday.
- Industrial production expands less than expected in the U.S. in October.
- Crude oil recovery helps the loonie gather strength.
After spending the majority of the day in a relatively tight range below the 1.32 mark, the USD/CAD pair lost its traction in the early NA session and fell to its lowest level in a week at 1.3127. As of writing, the pair was trading at 1.3137, losing 0.3% on a daily basis.
In an interview with CNBC, the Federal Reserve's new Vice Chairman, Richard Clarida, warned that the Fed needed to factor in the global economic slowdown in its outlook and added that the Fed was close to the "vicinity of neutral." Following these remarks, the US Dollar Index, which tracks the greenback against a basket of six major currencies, fell to its lowest level since November 8 at 96.40 and was last seen down 0.68% on the day at 96.45. Additionally, a 1% drop seen in the 10-year U.S. T-bond yield put some extra weight on the greenback's shoulders.
The only data from the U.S. today showed that the industrial production in October increased by 0.1% to miss the market expectation of 0.2%. Commenting on the data, "The US manufacturing sector remained healthy in October rising 0.3%. The overall industrial sector gain of 0.1% was dragged down by a 0.3% decline in mining and a 0.5% drop in utility output," FXStreet Senior Analyst Joesph Trevisani said.
On the other hand, crude oil prices are looking to close the third day in a row higher with the barrel of West Texas Intermediate adding 1.7% on a daily basis and helping the commodity-sensitive loonie stay resilient against its rivals.
Technical levels to consider
The pair could face the first technical support at 1.3085 (Nov. 8 low) ahead of 1.3040 (50-DMA) and 1.3000 (psychological level/200-DMA). On the upside, resistances are located at 1.3185 (daily high), 1.3260 (Nov. 14 high) and 1.3335 (Jun. 21 high).
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.
Recommended content
Editors’ Picks
AUD/USD: Uptrend remains capped by 0.6650
AUD/USD could not sustain the multi-session march north and faltered once again ahead of the 0.6650 region on the back of the strong rebound in the Greenback and the prevailing risk-off mood.
EUR/USD meets a tough barrier around 1.0800
The resurgence of the bid bias in the Greenback weighed on the risk-linked assets and motivated EUR/USD to retreat to the 1.0750 region after another failed attempt to retest the 1.0800 zone.
Gold eases toward $2,310 amid a better market mood
After falling to $2,310 in the early European session, Gold recovered to the $2,310 area in the second half of the day. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.5% and helps XAU/USD find support.
Bitcoin price coils up for 20% climb, Standard Chartered forecasts more gains for BTC
Bitcoin (BTC) price remains devoid of directional bias, trading sideways as part of a horizontal chop. However, this may be short-lived as BTC price action consolidates in a bullish reversal pattern on the one-day time frame.
What does stagflation mean for commodity prices?
What a difference a quarter makes. The Federal Reserve rang in 2024 with a bout of optimism that inflation was coming down to their 2% target. But that optimism has now evaporated as the reality of stickier-than-expected inflation becomes more evident.