USD/CAD extends slide toward 1.3200, remains on track to finish week in red


  • WTI erases portion of early losses, trades above $53.
  • US Dollar Index drops below 99.30 after dismal PMI data.
  • Retail Sales in Canada stayed unchanged in December.

The heavy selling pressure surrounding the greenback and a modest rebound seen in crude oil prices caused the USD/CAD pair to slide toward the 1.3200 handle on Friday. As of writing, the pair was down 0.35% on a daily basis at 1.3213 and was looking to close the second straight week in the negative territory.

Earlier in the day, the data published by Statistics Canada showed Retail Sales in December stayed unchanged after rising 1.1% in November and fell short of the market expectation for an increase of 0.1%. 

USD weakens after dismal PMI data

However, with the preliminary February PMI data from the US coming in much worse than expected, the USD selloff intensified and allowed the CAD to outperform the USD. 

The IHS Markit's Manufacturing PMI in February slumped to 50.8 from 51.9 and the Services PMI dropped to 49.4 to show contraction in the service sector's economic activity for the first time in four years. The US Dollar Index, which touched its highest level since April 2017 at 99.91 on Thursday, fell sharply during the American trading hours and was last seen down 0.6% on the day at 99.28.

Meanwhile, the West Texas Intermediate (WTI) staged a modest rebound after Saudi Arabia's energy minister denied The Wall Street Journal report claiming that Saudi Arabia was considering to break the OPEC+ alliance with Russia and helped the commodity-related CAD preserve its strength. At the moment, the barrel of WTI is trading at $53.40, still down 0.55% on the day.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3206
Today Daily Change -0.0054
Today Daily Change % -0.41
Today daily open 1.326
 
Trends
Daily SMA20 1.3247
Daily SMA50 1.3147
Daily SMA100 1.3179
Daily SMA200 1.3215
 
Levels
Previous Daily High 1.327
Previous Daily Low 1.3212
Previous Weekly High 1.333
Previous Weekly Low 1.3236
Previous Monthly High 1.3255
Previous Monthly Low 1.29
Daily Fibonacci 38.2% 1.3247
Daily Fibonacci 61.8% 1.3234
Daily Pivot Point S1 1.3224
Daily Pivot Point S2 1.3189
Daily Pivot Point S3 1.3166
Daily Pivot Point R1 1.3282
Daily Pivot Point R2 1.3305
Daily Pivot Point R3 1.334

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

USD/JPY off lows, stays pressured near 142.50 ahead of BoJ policy decision

USD/JPY off lows, stays pressured near 142.50 ahead of BoJ policy decision

USD/JPY has bounced off lows but remains pressured near 142.50 in the Asian session on Friday. Markets turn risk-averse and flock to the safety in the Japanese Yen while the Fed-BoJ policy divergence and hot Japan's CPI data also support the Yen ahead of the BoJ policy verdict. 

USD/JPY News
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed. 

AUD/USD News
Gold price treads water below record peak, awaits Fedspeak

Gold price treads water below record peak, awaits Fedspeak

Gold price hovers below the all-time peak touched earlier this week amid a bearish US Dollar and rising bets for more upcoming rate cuts by the Fed. Concerns over an economic downturn in China keep the safe-haven Gold price afloat. Fedspeak remains on tap. 

Gold News
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD (RUSD) stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures