- USD/CAD firmer on renewed US dollar’s haven demand.
- WTI consolidates Wednesday 2% rally.
- Focus on US/ Canadian jobs data, sentiment on Wall Street.
The USD/CAD pair posts small gains above 1.3150 in European trading, looking to extending its three-day recovery from five-week lows of 1.3097.
The bulls remain in control and challenge Wednesday’s high of 1.3163, in the wake of the resurgent US dollar demand seen across the board, as investors scurry up to the safe-haven amid diminishing hopes of a US fiscal stimulus package.
Stocks dropped and the greenback caught a fresh bid-wave in the US last session after Treasury Secretary Steve Mnuchin explicitly said that a fiscal deal before the November 3 election is difficult.
However, the gains in the major remained capped by the 2% rally in the US oil. WTI surged past the $41 mark on Thursday after OPEC and its allies (OPEC+) reportedly complied with the oil output cuts in September. Meanwhile, a bigger-than-expected draw in the US crude stockpiles also added to oil’s upside, in turn, offering some support to the resource-linked Loonie.
Looking ahead, the weekly US Jobless Claims data remain in focus for fresh cues on the US labor market recovery. Meanwhile, the Canadian ADP jobs data, sentiment on Wall Street and Bank of Canada (BOC) Deputy Governor Timothy Lane’s speech will be also closely eyed for fresh cues on the CAD pair.
USD/CAD: Technical levels
FXStreet’s Analyst Anil Panchal notes, “following the downside break of 1.3125, the 1.3100 threshold may offer an intermediate halt during the south-run towards the previous month’s bottom surrounding the 1.3000 psychological magnet. On the contrary, an upside clearance of the pattern’s resistance line, at 1.3168 now, can escalate the recovery moves towards the 200-HMA level of 1.3207.”
USD/CAD: Additional levels
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.