USD/CAD: Limited upside within bearish setup – Scotiabank

FXStreet Insights Team FXStreet

Scotiabank strategists Shaun Osborne and Eric Theoret note the Canadian Dollar (CAD) is holding relatively firm against a stronger US Dollar (USD), helped by resilient risk sentiment and record S&P 500 levels. Short‑term USD/CAD technicals remain bearish despite a three‑day bounce, with the bank expecting limited upside and strong resistance in the low/mid‑1.37s, while support is seen at 1.3625 and then the low‑1.35s.

Bearish bias despite modest USD bounce

"The CAD is easing marginally in early trade but has held little changed through most of the overnight session. The CAD’s resistance to the USD’s broader advance today leaves it as a relative outperformer among the major currencies."

"Domestic news and developments remain limited and the intraday trend in the CAD continues to depend primarily on the broader dollar tone and the risk backdrop. Stocks are down modestly this morning but the S&P 500 reached another record high yesterday and there is little sign of the bull mood weakening at this point."

"Spot is firmer for a third consecutive day but minor dollar gains are not impinging on the weak technical undertone for USDCAD at this point."

"The USD’s advance reflects a minor consolidation from Tuesday’s low on the short-term charts (potential bear flag or wedge pattern) and trend strength oscillators remain bearishly aligned for the USD across intraday, daily and weekly studies."

"We continue to look for limited USD gains and firm resistance in the low/mid-1.37 zone. Support remains 1.3625 ahead of a drop back to the low 1.35s."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD hovers around 0.7050 as focus shifts to US GDP and PCE data

AUD/USD holds steady around mid-0.7000s in the Asian session on Thursday, trading just below the one-month high it touched the previous day, as November RBA rate hike bets continue to support the Australian Dollar. Meanwhile, the US Dollar reverses part of Wednesday's post-FOMC corrective slide and caps the currency pair as traders now look to US GDP and the PCE Price Index.

USD/JPY retakes 158.00 as USD stalls the post-FOMC corrective slide

USD/JPY attracts some dip-buyers during the Asian session on Thursday, climbing back above 158.00 as the US Dollar reverses part of the post-FOMC pullback from a two-week high. Bulls, however, await key US macro data – the Advance Q3 GDP and the PCE Price Index – before positioning for further gains. Focus will then shift to the crucial BoJ policy update on Friday amid firming expectations for a December rate hike.

Gold weakens below $4,050 amid renewed USD buying ahead of crucial US data

Gold slides back below $4,050 during the Asian session on Thursday, snapping a three-day winning streak. The US Dollar regains positive traction after Wednesday’s post-FOMC corrective slide as elevated energy prices keep December rate-hike bets firmly on the table. Moreover, geopolitical risks underpin the safe-haven buck, weighing on bullion as traders now look to crucial US data – the Advance Q3 GDP and the PCE Price Index.

Bitcoin volatility falls to 2023 lows, Glassnode says

Bitcoin climbed above $81,000 on Wednesday as the Federal Reserve (Fed) kept interest rates unchanged at 3.75%–4.00% in a 10–2 vote. The decision came as the top crypto's realized volatility fell to levels last seen in the summer of 2023.

Fed's recap: A cautious hold with a clear warning on inflation

The Federal Reserve (Fed) held its policy rate steady at 3.75%-4.00%, but it wasn’t a unanimous decision. Among two officials who wanted a 25-basis-point hike were Lisa Cook and Beth Hammack, while Chair Kevin Warsh said the Fed would use the coming flow of information to decide whether further action is needed. The statement presented a resilient economy.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.