USD/CAD gains ground below the mid-1.3200s on a modest US Dollar recovery

USD/CAD attracts some buyers around 1.3230 on the modest USD rebound.
A decline in oil prices weighs on the commodity-linked Loonie.
The US Initial Jobless Claims figure for the third week of December fell short of expectations.
Traders await the December’s Chicago Purchasing Managers' Index (PMI).

Lallalit Srijandorn FXStreet

The USD/CAD pair recovers some lost ground during the Asian session on Friday. The rebound of the pair is supported by the modest gains of the US dollar (USD) and a decline in oil prices. However, the bearish outlook of USD/CAD remains intact as the pair holds below the key 100-day Exponential Moving Average (EMA) on the daily chart. USD/CAD currently trades near 1.3230, up 0.02% on the day.

Oil prices continue to drop on Friday due to concerns about supply disruptions. This, in turn, exerts some selling pressure on the commodity-linked Loonie.

The Bank of Canada (BoC) suggested in the statement at its December meeting that the governing council felt more optimistic about the nation's inflation outlook and opened the door for additional rate hikes. However, the November Consumer Price Index (CPI) did not slow down, which might offer some hints that the odds of another interest rate hike have fallen.

On the other hand, investors expect interest rate cuts in the US next year. The Federal Reserve (Fed) maintained rates unchanged at 5.25%-5.50% at its last meeting of the year. Fed Chair Jerome Powell stated that the timing of rate cuts would be the Fed's "next question.” The shift of the Fed's stance to dovish has dragged the Greenback lower across the board and sent bond yields lower.

The US Department of Labor revealed on Thursday that the weekly Initial Jobless Claims figure fell short of expectations, coming in at 218K for the week ending December 23 from the previous week's figure of 206K, below the projected 210K. Meanwhile, Pending Home Sales in the United States remained flat at 0%, weaker than the estimation of 1.0%.

The Chicago Purchasing Managers' Index (PMI) for December will be published later on Friday from the US docket, and it is expected to decline from 55.8 to 51.0. The market has another quiet session as traders enter holiday mode heading into 2024.

USD/CAD

Overview
Today last price	1.3231
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.3228

Trends
Daily SMA20	1.342
Daily SMA50	1.3606
Daily SMA100	1.359
Daily SMA200	1.349

Levels
Previous Daily High	1.3236
Previous Daily Low	1.3182
Previous Weekly High	1.3409
Previous Weekly Low	1.3219
Previous Monthly High	1.3899
Previous Monthly Low	1.3541
Daily Fibonacci 38.2%	1.3215
Daily Fibonacci 61.8%	1.3203
Daily Pivot Point S1	1.3195
Daily Pivot Point S2	1.3162
Daily Pivot Point S3	1.3142
Daily Pivot Point R1	1.3248
Daily Pivot Point R2	1.3269
Daily Pivot Point R3	1.3302

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

AUD/USD: Next upside target comes at 0.7000

AUD/USD has advanced further, clinching its third consecutive day of gains and trading at shouting distance from the key 0.7000 threshold on Tuesday. The widespread improved sentiment in the risk complex helped the Aussie maintain its upside momentum, while the fresh selling impulse in the Greenback also contributed to the move.

USD/JPY rises back above 158.00 despite hawkish BoJ outlook

USD/JPY rises back above 158.00 in the early European morning on Tuesday. The pair strengthens as the Japanese Yen fails to find any inspiration from hawkish BoJ expectations and looming intervention risks. Meanwhile, geopolitical uncertainty and elevated US bond yields keep the US Dollar near its YTD high despite receding October Fed hike bets. This, in turn, helps the pair stay supported.

Gold stays firm; looks at $4,200

Gold builds on Monday’s marginal bounce, although it struggles to reclaim the key $4,200 mark per troy ounce so far on Tuesday. The yellow metal’s advance comes on the back of the fresh downside momentum in the US Dollar in tandem with retreating US Treasury yields across the curve.

Ethena Price Forecast: ENA corrects as Ether.Fi launches stablecoin on the protocol

Ethena (ENA) trades near $0.24000 on Tuesday amid growing technical weakness. The Ethereum Layer-2 token has shed some of its recent gains, which peaked at $0.2946 on September 27, reinforcing profit-taking and buyer exhaustion. An extended sell-off would bring ENA to test the psychological support at $0.2000 and key technical levels further down.

Japanese Yen nears 158.00: Two analysts agree it's bullish, and disagree on how far the breakout goes

The JPY is drifting near 158.00 against the USD ahead of a busy week of Japanese data and a still-unclear BoJ timetable. The two most recent FXStreet analyses agree on the direction, but they disagree on the target and the mechanism.

Eurozone inflation just hit 3.8%, its highest in three years. This chart shows why the ECB can’t simply hike its way out

The ECB would normally have a relatively straightforward answer to inflation running almost twice its target: raise interest rates. But these are not normal circumstances. This time, the bond market is already doing part of the tightening for it, leaving the ECB facing an increasingly difficult dilemma.