USD/CAD erases daily losses on Bullard's hawkish remarks, fails to hold above 1.32


  • Fed's Bullard argues against a 50 bps rate cut in July.
  • FOMC Chairman Powell largely repeats last Wednesday's remarks.
  • US Dollar Index recovers modestly, looks to snap 4-day losing streak.

The greenback gathered strength against its major rivals in the last hour after St. Louis Fed President Bullard's comments weakened the probability of a 50 basis points rate cut in July. Boosted by the greenback's rebound, the USD/CAD pair rose to a daily high of 1.3207 but failed to preserve its strength. As of writing, the pair was posting small daily gains at 1.3183.

During an interview with Bloomberg TV, Bullard said a 50 basis points rate cut in July would be overdone. "I don't think the situation really calls for that, but I would be willing to go 25," Bullard added. According to the CME Group's FedWatch Tool, markets are now pricing a 35% probability of a 50 bps rate cut compared to 43% seen on Monday. The US Dollar Index, which reached a daily peak of 96.36 following the knee-jerk reaction, was last up 0.15% on the day at 96.15.

Meanwhile, FOMC Chairman Powell in his prepared remarks today pretty much repeated his opening statement that he delivered last Wednesday during the FOMC press conference.

On the other hand, today's data from Canada showed that wholesale sales increased by 1.7% on a monthly basis in April to surpass the market expectation of 0.2% by a wide margin to help the loonie stay relatively resilient. Moreover, the barrel of West Texas Intermediate is clinging to its daily gains near the $58 mark, providing additional support to the commodity-related CAD.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3182
Today Daily Change 0.0002
Today Daily Change % 0.02
Today daily open 1.318
 
Trends
Daily SMA20 1.336
Daily SMA50 1.3405
Daily SMA100 1.3356
Daily SMA200 1.3288
Levels
Previous Daily High 1.3218
Previous Daily Low 1.3178
Previous Weekly High 1.3434
Previous Weekly Low 1.3151
Previous Monthly High 1.3566
Previous Monthly Low 1.3357
Daily Fibonacci 38.2% 1.3193
Daily Fibonacci 61.8% 1.3202
Daily Pivot Point S1 1.3166
Daily Pivot Point S2 1.3152
Daily Pivot Point S3 1.3126
Daily Pivot Point R1 1.3206
Daily Pivot Point R2 1.3232
Daily Pivot Point R3 1.3247

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD hits three-month highs amid Brexit hopes

GBP/USD is rising toward 1.3450, the highest since September, shrugging off Brexit concerns. France may reportedly veto a deal if it sees too many compromises from the EU. The final US Services PMI, vaccine developments and US data are all awaited. 

GBP/USD News

EUR/USD resumes advance, reaches fresh highs

The EUR/USD pair is firmly advancing beyond 1.2100, trading at levels that were last seen in April 2018. The dollar is under pressure amid hopes for US fiscal stimulus and an upcoming vaccine. Investors are shrugging off Germany's extended restrictions.

EUR/USD News

XAU/USD clings to gains near $1840 area, over one-week tops

Gold maintained its bid tone through the mid-European session and was last seen trading near the top end of its daily range, or over one-week highs around the $1840 region.

Gold news

Crypto market relentlessly fighting for new yearly highs

Bitcoin is leading the recovery in the cryptocurrency market after reclaiming the position above $19,000. Ethereum has managed to bring down the critical hurdle at $600 while Ripple is holding slightly above $0.62.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures