USD/CAD fades data-led gains, refreshes 3-week lows

Eren Sengezer FXStreet

Following a spike to the 1.36 handle at the NA session opening, the USD/CAD pair reversed course and dropped to a new three-week low at 1.3540. As of writing, the pair was trading at 1.3544, losing 60 pips, or 0.45% on the day.

Today's data from Canada revealed that the consumer inflation in April advanced to 0.4% from 0.2% in March on a monthly basis, and remained unchanged at 1.6% on a yearly basis. Both of the reading came in below the expectations and triggered a loonie sell-off, pushing the pair to its session high.

However, the effects of the dismal data quickly faded as the investors shifted their attention to dovish comments from Fed's Bullard, who implied that the Fed wouldn't need to make any more rate hikes after June. Following Bullard's statements, the US Dollar Index fell to its worst level since Trump's election victory at 97.11. At the moment, the index was at 97.17, down 0.61% on the day.

Fed's Bullard: Would not object to June hike

Furthermore, after rising above the significant $50 level, the barrel of West Texas Intermediate sustained its bullish momentum and recently reached its highest level since April 24 at $50.45, further supporting the commodity-linked loonie.

OPEC panel considering scenario of deepening, extending oil supply cut - RTRS

Technical levels to consider

The initial support for the pair aligns at 1.3500 (psychological level/50-DMA) ahead of 1.3455 (Apr. 20 low) and 1.3400 (psychological level). To the upside, resistances could be seen at 1.3600 (psychological level), 1.3665 (20-DMA) and 1.3720 (May 15 high).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited

The GBP/USD pair struggles to capitalize on the previous day's late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs

Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.