|

USD/CAD hovers above 1.3700 major level after trimming intraday losses

  • USD/CAD treads waters above 1.3700 post-trimming intraday losses.
  • BoC is expected to maintain interest rates at 5.0% in Wednesday’s meeting.
  • Upbeat US Treasury yields contribute support to underpinning the Greenback.

USD/CAD retraces intraday losses, trading around 1.3710 during the European session on Monday. The pair gains ground as the US Dollar treads waters to halt the recent losses, driven by higher US Treasury yields. Additionally, increased risk aversion, stemming from the Israel-Hamas military situation, contributes to the USD/CAD pair's gains.

However, the bearish trend in Crude oil prices, which weighs on the commodity-linked Loonie, advances further losses in the USD/CAD pair.

Western Texas Intermediate (WTI) oil price drops for the second successive day, trading lower around $87.40 per barrel during the European session on Monday.

Investors await the Bank of Canada (BoC) Interest Rate Decision on Wednesday, with expectations that the interest rate will be maintained at 5.0%. The market is expecting the BoC to keep the interest rate unchanged for the rest of the year. Furthermore, there are anticipations of a rate cut in the second quarter of 2024.

Mixed remarks from US Federal Reserve (Fed) officials on the trajectory of interest rates may contribute to pressure on the USD/CAD pair. Atlanta Fed President Raphael Bostic indicated that the Federal Reserve is unlikely to lower interest rates before the middle of next year, and Fed Philadelphia President Patrick Harker expressed a preference for maintaining unchanged interest rates.

Moreover, Federal Reserve (Fed) Chairman Jerome Powell clarified in the previous week that the central bank is not planning an immediate rate hike, emphasizing the potential for further tightening of monetary policy in response to signs of growth.

The US Dollar Index (DXY) trims intraday gains, trading lower around 106.10, the index had earlier received upward support from positive momentum in US Treasury yields. The 10-year US Treasury yield stands at 4.99%, up by 1.65% at the time of writing.

Investors are likely to keep a close eye on the US S&P Global PMI on Tuesday and the Q3 Gross Domestic Product (GDP) on Thursday for potential market-moving insights into the US economic landscape.

USD/CAD: additional levels to watch

Overview
Today last price1.3712
Today Daily Change-0.0003
Today Daily Change %-0.02
Today daily open1.3715
 
Trends
Daily SMA201.3628
Daily SMA501.358
Daily SMA1001.3424
Daily SMA2001.3471
 
Levels
Previous Daily High1.3734
Previous Daily Low1.367
Previous Weekly High1.3741
Previous Weekly Low1.3606
Previous Monthly High1.3694
Previous Monthly Low1.3379
Daily Fibonacci 38.2%1.3695
Daily Fibonacci 61.8%1.371
Daily Pivot Point S11.3679
Daily Pivot Point S21.3642
Daily Pivot Point S31.3614
Daily Pivot Point R11.3743
Daily Pivot Point R21.3771
Daily Pivot Point R31.3808

Author

Akhtar Faruqui

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

More from Akhtar Faruqui
Share:

Editor's Picks

EUR/USD eases to four-week lows near 1.1650

EUR/USD now loses further momentum and recedes to multi-week lows near 1.1650 on Thursday. The pair’s extra retracement comes on the back of the persistent bid tone in the US Dollar as investors continue to gear up for the release of the December NFP figures on Friday.

GBP/USD: Further weakness could challenge 1.3400

GBP/USD remains under unabated selling pressure on Thursday, slipping to fresh three-day lows around 1.3415 in response to further improvement in the sentiment surrounding the Greenback ahead of Friday’s key NFP data.

Gold bounces back to its comfort zone

Gold now manages to regain some balance, fading its earlier pullback to the proximity of the $4,400 region per troy ounce and reshifting its attention to the $4,450 zone on Thursday. The yellow metal’s move lower comes in response to a better tone in the Greenback and the generalised recovery in US Treasury yields.

Crypto Today: Bitcoin, Ethereum, XRP extend decline as ETF outflows pose headwinds

Bitcoin struggles with selling pressure as institutional investor sentiment deteriorates. Ethereum hangs onto the 50-day EMA lifeline amid growing overhead risks and the resumption of ETF outflows.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

XRP slides as institutional and retail demand falters

Ripple is trading down for the third consecutive day on Thursday amid escalating volatility in the cyrptocurrency market. After peaking at $2.41 on Tuesday, its highest print since November 14 amid the early-year rally, XRP has quickly ran into aggressive profit-taking.