USD/CAD hangs near multi-month lows, below mid-1.3000s

The USD remains on the defensive amid firming Fed rate cut expectations.
A modest pullback in Oil prices undermined Loonie and helped limit losses.

Haresh Menghani FXStreet

The USD/CAD pair struggled to register any meaningful recovery and remained well within the striking distance of 8-1/2 month lows set on Friday.

The pair did attempt a modest bounce on Friday following the release of US Produce Price Index but was quickly sold into after comments by Chicago Fed President Charles Evans added to the Fed Chair Jerome Powell's dovish remarks and indicated that the US rate cuts are needed to boost inflation.

The US Dollar remained depressed at the start of a new trading week and kept exerting some downward pressure on the major, albeit a modest pullback in Crude Oil prices undermined demand for the commodity-linked currency - Loonie and helped limit further losses, at least for the time being.

Oil prices slipped on Monday in the wake of Chinese macro data that showed economic growth slowed to 6.2% yearly rate during the second-quarter of 2019 - the slowest quarterly growth in at least 27 years and reinforced market concerns about demand in the world's largest Crude Oil importer.

It would now be interesting to see if the pair is able to attract any buying interest ahead of the key 1.30 psychological mark or continues with its recent bearish trajectory as market participants now look forward to the release of Empire State Manufacturing Index from the US for a fresh impetus.

This followed by a scheduled speech by New York Fed President John Williams might further collaborate towards producing some short-term trading opportunities later during the early North-American session.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3026
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	1.3028

Trends
Daily SMA20	1.3254
Daily SMA50	1.3375
Daily SMA100	1.3349
Daily SMA200	1.3293

Levels
Previous Daily High	1.309
Previous Daily Low	1.3018
Previous Weekly High	1.3144
Previous Weekly Low	1.3018
Previous Monthly High	1.3529
Previous Monthly Low	1.306
Daily Fibonacci 38.2%	1.3045
Daily Fibonacci 61.8%	1.3063
Daily Pivot Point S1	1.3001
Daily Pivot Point S2	1.2972
Daily Pivot Point S3	1.2928
Daily Pivot Point R1	1.3074
Daily Pivot Point R2	1.3119
Daily Pivot Point R3	1.3147

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.