- 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.
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
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
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.