USD/CAD erases weekly gains, eyes October lows

Matías Salord FXStreet

The Loonie rose further against the US dollar during the American session and dropped back to the level it closed last week. A retreat of the greenback and a recovery of the Canadian dollar pushed USD/CAD to the downside.

The pair was hovering above 1.2520 and turned to the downside after the release of US and Canadian economic data. US housing data came in below expectations while in Canada, Manufacturing sales jumped 1.6% above the 1.0% expected. The loonie gained momentum and pushed USD/CAD back below 1.2500. Friday will be the key day for Canadian data with the release of August’s retail sales and September’s CPI.

Canada: Manufacturing sales increased 1.6% to $53.5 billion in August

US Housing Starts: Storm-induced volatility likely to continue - Wells Fargo

The pair slid further and bottomed at 1.2462, the lowest since Monday. It has completed an important reversal after falling more than a hundred pips from yesterday’s highs. USD/CAD now appears to be headed toward a test of October lows located at 1.2430. It remained near at the lows after the released of the Fed’s Beige Book with the Loonie consolidating gains across the board.

Fed's Beige Book: Price pressures remained modest

Technical levels

To the downside, below day’s low supports might be located at 1.2450 (Oct 13 low), 1.2430 (Oct low) and 1.2400. On the flip side, the immediate resistance is now seen at 1.2500, followed by 1.2530/35 (Oct 18 high) and 1.2560 (Oct 9 & 16 high).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.