- USD/CAD failed to capitalize on its early uptick and met with some fresh supply near 1.4275 region.
- The prevailing bearish sentiment surrounding the USD was seen as a key factor weighing on the pair.
- The already weaker greenback was further weighed down by the Fed Chair Powell’s latest comments.
The USD/CAD pair dropped to 1-1/2 week lows in the last hour, albeit managed to find some support just ahead of the 1.4100 round-figure mark.
The pair failed to capitalize on its early attempted recovery move to the 1.4275 region, rather met with some fresh supply and has retreated over 150 pips from daily tops, all against the backdrop of persistent selling bias surrounding the US dollar.
The already weaker sentiment surrounding the greenback deteriorated further after the Fed Chair Jerome Powell, in an interview on NBC Today, said that the US central bank still has room for more action to combat coronavirus crisis.
Against the backdrop of the Fed's unlimited quantitative easing program earlier this week, Powell's comments exerted some additional pressure on the USD and aggravated the bearish pressure/contributed to the ongoing slide.
With the USD price dynamics turning out to be an exclusive driver of the pair's momentum, the downfall seemed rather unaffected by some renewed weakness in crude oil prices, which tend to undermine demand for the commodity-linked currency – the loonie.
Moving ahead, market participants now look forward to the US economic docket, featuring the release of the highly anticipated initial weekly jobless claims and the final Q4 GDP growth figures, for some short-term trading opportunities.
Technical levels to watch
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
Editors’ Picks
EUR/USD stays below 1.0800 after upbeat US data
EUR/USD stays under bearish pressure and trades slightly below 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold clings to strong daily gains above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.