USD/CAD holds comfortably above 1.3300 handle

The USD remains well supported by a goodish pickup in the US bond yields.
Reports that the EU will halt imports of Canadian fruits further weighed on CAD.
Subdued Oil price action does little to influence ahead of Powell’s speech.

Haresh Menghani FXStreet

The USD/CAD pair held comfortably above the 1.3300 handle through the early European session on Friday, albeit remained well below two-month tops set earlier this week.

A combination of factors helped the pair to continue gaining some positive traction for the second consecutive session on Friday and built on this week's rebound from the 1.3250 support area - tested in reaction to hotter-than-expected Canadian CPI report on Wednesday.

A combination of factors remain supportive

Against the backdrop of not so dovish FOMC meeting minutes on Wednesday, the US Dollar remained well supported by a goodish pickup in the US Treasury bond yields and turned out to be one of the key factors behind the pair's ongoing positive momentum.

This coupled with a report that the European Union will halt imports of Canadian cherries and other fresh fruits starting Sept. 1 amid new import requirements related to pests further weighed on the Canadian Dollar and remained supportive of the pair's bid tone.

Meanwhile, a subdued action around Crude Oil prices did little to influence demand for the commodity-linked currency - Loonie, or provide any meaningful impetus ahead of the Fed Chair Jerome Powell's scheduled speech at Jackson Hole Symposium later this Friday.

Given that another rate cut in the September meeting is fully priced in, Powell's comments will be closely scrutinized to find out if the central bank is prepared to slash rates further and will play a key role in determining the pair's next leg of a directional move.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3316
Today Daily Change	0.0011
Today Daily Change %	0.08
Today daily open	1.3305

Trends
Daily SMA20	1.3247
Daily SMA50	1.3184
Daily SMA100	1.3298
Daily SMA200	1.3314

Levels
Previous Daily High	1.3316
Previous Daily Low	1.3275
Previous Weekly High	1.334
Previous Weekly Low	1.3184
Previous Monthly High	1.3215
Previous Monthly Low	1.3016
Daily Fibonacci 38.2%	1.3301
Daily Fibonacci 61.8%	1.3291
Daily Pivot Point S1	1.3281
Daily Pivot Point S2	1.3257
Daily Pivot Point S3	1.324
Daily Pivot Point R1	1.3322
Daily Pivot Point R2	1.334
Daily Pivot Point R3	1.3364

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 keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.