- USD/CAD snaps a two-day downtrend as USD attempts a bounce.
- Risk-off mood extends into Europe amid renewed China Evergrande fears.
- WTI retreats from seven-year tops, undermines CAD, supporting the pair.
The greenback is finding its feet against its major rivals, bouncing from three-week lows, as the risk appetite takes a hit amid the re-emergence of China Evergrande default fears after the indebted property development giant failed to clinch a property sale deal with Hopson Development Holdings.
Further, global energy crunch combined with rising inflationary pressures continues to sap investors’ confidence, putting a floor under the greenback’s recent corrective decline.
On the other hand, the risk-off market profile is weighing negatively on the higher-yielding WTI, as it retreats from fresh seven-week highs of $83.71, currently down 0.70% at $82.80. The pullback in oil prices is weighing on the resource-linked loonie, aiding the recovery in the currency pair.
Despite the rebound, risks remain skewed to the downside for USD/CAD, as hotter Canadian inflation data fans sooner-than-expected rate hike bets from the Bank of Canada (BOC). The country’s annual Consumer Price Index (CPI) rose by 4.4% in September vs. 4.3% expected.
Next of relevance for the major remains the US weekly Jobless Claims data and Fedspeak while the sentiment on the Wall Street will be closely followed amid the Q3 earnings season.
USD/CAD: Technical levels to watch out
|Today last price||1.2330|
|Today Daily Change||0.0011|
|Today Daily Change %||0.09|
|Today daily open||1.232|
|Previous Daily High||1.237|
|Previous Daily Low||1.2307|
|Previous Weekly High||1.2498|
|Previous Weekly Low||1.2337|
|Previous Monthly High||1.2896|
|Previous Monthly Low||1.2494|
|Daily Fibonacci 38.2%||1.2331|
|Daily Fibonacci 61.8%||1.2346|
|Daily Pivot Point S1||1.2295|
|Daily Pivot Point S2||1.227|
|Daily Pivot Point S3||1.2233|
|Daily Pivot Point R1||1.2357|
|Daily Pivot Point R2||1.2395|
|Daily Pivot Point R3||1.242|
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.