USD/CAD extends steady recovery from multi-month lows post-US PPI, still in the red


  • A follow-through uptick helped the USD to regain positive traction and extended some support.
  • Investors further scale back expectations for aggressive Fed rate cut on upbeat US PPI figures.
  • A modest pullback in Oil prices undermined Loonie and remained supportive of the rebound.

The USD/CAD pair held on to its weaker tone through the early North-American session, albeit has managed to recover few pips from multi-month lows set earlier this Friday.

The pair extended this week's pullback from the 1.3140-45 supply zone and remained under some heavy selling pressure for the third consecutive session, hitting 8-1/2 month lows on the last trading day of the week. 

However, a follow-through pickup in the US Treasury bond yields helped limit the intraday US Dollar downtick, at least for the time being, and assisted the pair to find decent support ahead of the key 1.30 psychological mark.

Meanwhile, Friday's release of hotter-than-expected Produce Price Index (PPI) from the US added to Thursday's stroner consumer inflation figures and further tempered expectations for an aggressive monetary easing by the Fed.

This coupled with a modest pullback in Crude Oil prices undermined demand for the commodity-linked currency and further collaborated to the pair's recovery of around 20-pips from the lowest level since late-Oct. 2018.

Next in focus will be a scheduled speech by Chicago Fed President Charles Evans, which might further influence market expectations about the Fed's policy outlook and produce some meaningful trading opportunities.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3034
Today Daily Change -0.0039
Today Daily Change % -0.30
Today daily open 1.3073
 
Trends
Daily SMA20 1.3169
Daily SMA50 1.3323
Daily SMA100 1.3339
Daily SMA200 1.3299
Levels
Previous Daily High 1.3092
Previous Daily Low 1.3042
Previous Weekly High 1.3147
Previous Weekly Low 1.3038
Previous Monthly High 1.3529
Previous Monthly Low 1.306
Daily Fibonacci 38.2% 1.3061
Daily Fibonacci 61.8% 1.3072
Daily Pivot Point S1 1.3046
Daily Pivot Point S2 1.3019
Daily Pivot Point S3 1.2996
Daily Pivot Point R1 1.3096
Daily Pivot Point R2 1.3119
Daily Pivot Point R3 1.3146

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.

EUR/USD News

GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.

GBP/USD News

USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.

USD/JPY News

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •