USD/CAD juggles around 1.3500 as investors await US FOMC minutes

USD/CAD is oscillating in a narrow range around 1.3500 ahead of FOMC minutes.
Republicans are not agreeing on levying extra taxes on the Wealthy community or supporting higher spending initiatives.
The oil price has printed a fresh three-week high around $74.00 as global central banks are reaching the terminal rate.

Sagar Dua FXStreet

The USD/CAD pair is demonstrating topsy-turvy moves near the psychological figure of 1.3500 in the early Asian session. The Loonie asset is expected to remain sideways ahead of the release of the Federal Open Market Committee (FOMC) minutes for May’s monetary policy meeting.

S&P500 futures have added some gains in early Tokyo after a bearish Tuesday. The overall market mood is still risk-off amid deepening issues associated with US debt-ceiling case. US House Speaker Kevin McCarthy told House Republicans during a closed GOP meeting on Tuesday that “I need you all to hang with me on the debt limit, we are nowhere near a deal yet,”

Uncertainty about US borrowing cap issue soars after US President Joe Biden called partisan terms proposed by Speak McCarthy ‘extreme’. The latter is not agreed on levying extra taxes on the Wealthy community nor is he supporting higher spending initiatives.

The US Dollar Index (DXY) is showing signs of volatility contraction after reaching near the previous week’s high above 103.62. More gains are in the pipeline ahead of the FOMC minutes, which will provide a detailed explanation behind the 25 basis points (bps) interest rate hike by the Federal Reserve (Fed). Also, it will report current economic prospects and would deliver guidance on interest rates.

Meanwhile, the oil price has printed a fresh three-week high around $74.00 as investors seem confident that the US economy will not default and would find a bipartisan deal with Republicans. Also, other central banks are reaching the terminal rate, which is easing fears of a further slowdown.

It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices will support the Canadian Dollar.

USD/CAD

Overview
Today last price	1.3502
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.3505

Trends
Daily SMA20	1.351
Daily SMA50	1.3536
Daily SMA100	1.3509
Daily SMA200	1.348

Levels
Previous Daily High	1.3519
Previous Daily Low	1.3485
Previous Weekly High	1.3568
Previous Weekly Low	1.3404
Previous Monthly High	1.3668
Previous Monthly Low	1.3301
Daily Fibonacci 38.2%	1.3506
Daily Fibonacci 61.8%	1.3498
Daily Pivot Point S1	1.3487
Daily Pivot Point S2	1.3469
Daily Pivot Point S3	1.3453
Daily Pivot Point R1	1.3521
Daily Pivot Point R2	1.3537
Daily Pivot Point R3	1.3555

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

AUD/USD sits at three-week highs above 0.7000 on hawkish RBA-speak

AUD/USD holds a positive bias for the fourth straight day, trading above 0.7000 in the Asian session on Wednesday and at three-week highs. RBA Deputy Governor Andrew Hauser's hawkish remarks and inflation concerns underpin the pair. However, the upside appears capped as the US Dollar attracts some buyers amid looming US-Iran uncertainty.

USD/JPY remains confined in a familiar range below 158.50

USD/JPY sees some dip-buying in the Asian session on Wednesday, though it remains confined within a multi-week range near 158.50 as the uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. Meanwhile, hawkish Fed expectations, bolstered by inflation risks stemming from volatile oil prices, underpin the US Dollar. However, looming intervention fears could limit JPY losses and cap the currency pair.

Gold extends losing spree as US bond yields hold ground

Gold maintains an offered tone heading into the European session, trading near the weekly low it touched earlier this Wednesday, with bears still awaiting a sustained break and acceptance below $4,100 before positioning for further losses. Inflation risks stemming from volatile oil prices underpin prospects for further policy tightening by the US Federal Reserve. Furthermore, a modest US Dollar bounce from a near three-week low is seen weighing on the bullion.

Zcash's bullish reversal eyes $1,698 peak on NU7 upgrade

Zcash (ZEC) shows signs of bullish recovery above $1,200 on Wednesday, following a 9% rebound the previous day linked to the upcoming NU7 upgrade. Blockworks released a Zcash holders report on Tuesday, highlighting steady network growth. The technical outlook for ZEC is bullish, with bulls eyeing an extended rally toward $1,698.

US – Midterm update: Pre-election tail risk scenarios

With two weeks until the US midterm elections on 3 November, early voting has already opened in more than 40 states. Prediction markets are broadly unchanged since we published our Midterm update, 13 October. The prediction market Polymarket continues to see Democrats winning both chambers as the most likely outcome, with a 62.5% probability.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.