USD/CAD extends recovery in tandem with DXY

DXY hits fresh 5-day tops.
WTI turns lower in Europe.
Eyes on BOC Business outlook survey and Fedspeak.

FXStreet Team FXStreet

The USD/CAD pair keeps its recovery mode intact well above the 1.24 handle, as weaker oil prices combined with broad-based US dollar rebound continue to remain supportive.

USD/CAD headed to 1.2450

Amid unabated US dollar demand across the board, the USD/CAD pair remains buoyed and looks to extend the recovery towards the 1.2450 barrier. The USD index jumps +0.25% to flirt with five-day tops of 92.03, as markets believe that last month’s selling in the greenback may be overdone.

Meanwhile, fresh selling seen around the US oil, WTI, weighs negatively on the resource-linked Loonie turned negative, which further collaborates to the upside in the spot. WTI trades subdued near $ 61.50, although the losses appear capped amid lower US rigs count numbers.

The pair slumped to the lowest levels since Sept 2017 after the CAD was boosted on the Canadian jobs report, which came in strongly for the second month in a row, far exceeding expectations. “Canadian Unemployment Rate (Dec) was 5.7% vs an expected 6.0%, from a prior of 5.9%. Net Change in Employment (Dec) was 78.6K vs an expected 1.0K, with a previous read of 79.5K,” The FxPro Analyst Team noted.

Markets now look forward to the sentiment on the Wall Street and BOC Business outlook survey for fresh trading impetus while the FOMC member Bostic’s speech will also hog the limelight amid a data-quiet NA session ahead.

USD/CAD Technical View

The immediate support for the pair aligns at 1.2378 (daily low) ahead of 1.2353 (4-month low) and 1.2300 (natural support). On the upside, resistances could be seen at 1.2448/50 (5-DMA/ psychological levels), 1.2510 (10-DMA) and 1.2556 (intermittent tops).

Author

FXStreet Team

FXStreet

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.