USD/CAD holds weaker below 1.3400 handle, US CPI in focus

Haresh Menghani FXStreet

• The prevalent USD bullish sentiment fails to provide any meaningful boost.
• A goodish pickup in oil prices underpin Loonie and exert some selling pressure.
• Today’s key focus will be on the latest US consumer inflation figures for Nov.

The USD held on the defensive against its Canadian counterpart, with the USD/CAD pair trading with a slightly negative bias for the second consecutive session.

The pair continued with its struggled to sustain/build on the momentum further beyond the 1.3400 handle despite the prevailing bullish sentiment surrounding the US Dollar.

The greenback stood tall near one-month tops and was now supported by rebounding US Treasury bond yields, though failed to provide any meaningful bullish impetus to the major.

A goodish rebound in crude oil prices underpinned the commodity-linked currency - Loonie and seemed to be the only factor exerting some downward pressure through the early European session on Wednesday.

In fact, oil prices rallied over 1.5% on Wednesday amid news of disruptions to Libyan oil exports and a production loss of 315,000 bpd from the El Sharara oilfield after it was seized by a local militia group.

Currently hovering around the 1.3380-75 region, market participants now look forward to the latest US consumer inflation figures, due later during the early North-American session, for some fresh impetus.

Technical levels to watch

Immediate support is pegged near the 1.3355-50 region, below which the pair is likely to accelerate the fall further towards challenging the 1.3300 handle. On the flip side, the 1.3400 handle remains an immediate strong hurdle, which if cleared might assist the pair to aim back towards retesting 18-month tops, around the 1.3445 area.

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 remains depressed below mid-1.1800s; downside potential seems limited

The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold declines as trading volumes remain subdued due to holidays in China

Gold price extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday. Gold price is trading nearly 0.7% lower at the time of writing as trading volumes stayed thin due to market holidays across China, Hong Kong, and other parts of Asia.

Top Crypto Gainers: Stable, MemeCore and Nexo rally test critical resistance levels

Stable, MemeCore, and Nexo are among the leading gainers in the crypto market over the last 24 hours, while Bitcoin remains below $70,000, suggesting renewed interest in altcoins among investors.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

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.