USD/CAD fades Canadian GDP-led spike to 1.2940 supply zone


   •  Weaker Canadian GDP growth numbers provide a boost. 
   •  Gains were further supported by upbeat/inline US data.
   •  A modest USD weakness fails to lift beyond immediate hurdle.

The USD/CAD pair faded a knee-jerk spike and quickly retreated around 30-35 pips from session tops, touched during the early NA session.

The pair rebounded sharply from an intraday low level of 1.2889 and rallied hard in reaction to disappointing Canadian monthly GDP print. This coupled with an unexpected decline in the Canadian Raw Materials Price Index (RMPI) and slightly better-than-expected/in-line US economic releases lifted the pair to the 1.2940 supply zone.

The US Dollar, however, struggled to gain any follow-through traction and prompted some fresh selling near a technically important resistance zone. The negative factor, to some extent, was negated by retracing crude oil prices, which tends to weigh on the commodity-linked currency - Loonie, and helped the pair to hold its neck above the 1.2900 handle, at least for the time being.

Thursday's economic docket also features the release of Chicago PMI and revised UoM consumer sentiment, which along with the USD/oil price dynamics could help traders grab some short-term opportunities.

Technical levels to watch

The up-move might continue to confront some fresh supply near the 1.2940 region, above which a fresh bout of short-covering could assist the pair back towards reclaiming the key 1.30 psychological mark.

On the flip side, sustained weakness below the 1.2890-85 region might prompt some fresh selling and drag the pair back towards 1.2840-35 intermediate zone en-route the 1.2815-10 strong horizontal support.
 

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

AUD/USD holds steady around 0.7130 post-upbeat Aussie CPI

AUD/USD is in stasis above 0.7100 even as Australia's Q3 CPI beats estimates. The data is unlikely to deter the RBA from postponing additional easing. With coronavirus cases rising across the globe, the RBA is likely to cut rates next month.

AUD/USD News

USD/JPY looks south with bear flag breakdown on 4H chart

USD/JPY feels the pull of gravity as risk sentiment weakens on coronavirus concerns. Deeper losses look likely, as the 4-hour chart shows a bear flag breakdown. The pattern indicates a continuation of the sell-off from the Oct. 20 high of 105.75, possibly toward 104.00. 

USD/JPY News

Gold bounces-back towards $1910 amid growing coronavirus woes

Gold attempts bids amid coronavirus woes-led risk-aversion, as the bulls fight back control amid a sell-off in the US Treasury yields, triggered by the coronavirus concerns-induced risk-aversion. The benchmark US 10-year Treasury yields drop further below the key 0.80% level.

Gold News

WTI falls 1.2% on inventory data

The price of oil has fallen in recent trade as the recent inventory data shows a build on stockpiles, weighing on WTI. Technically, the price is deteriorating on a daily outlook. From a 4-hour perspective, the price might be expected to ....

Oil News

Dumping Dollars before the election

Investors are dumping US dollars ahead of next Tuesday’s US Presidential election. This will be a historic event for the country, the world and the financial markets. The stakes are high and the outcome is uncertain. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures