USD/CAD minor recovery not expected to last, eyes on 1.2461

Ross J Burland FXStreet

Currently, USD/CAD is trading at 1.2686, up 0.33% on the day, having posted a daily high at 1.2699 and low at 1.2627.

US Dollar recaptures 95 on a technical recovery

USD/CAD is higher despite the weakness in the greenback and recent BoC hawkishness, (domestic rate expectations are firm with OIS pricing in roughly 25bpts of tightening over the next 12 months), while WTI dips lower on the $46 handle. However, analysts at Scotiabank argued that CAD’s vulnerability to a positioning adjustment has diminished considerably, with Friday’s CFTC data showing another week short covering pushing the net position to its least bearish since first dropping into net short territory in mid-March.

USD/CAD levels

The analysts at Scotiabank suggested that USD/CAD's short-term technicals remain bearish, albeit with caution. "Momentum indicators are impressively oversold. The RSI is at fresh multi-year lows at levels last seen in 2007. USD/CAD has broken through all of the major support levels ahead of the May 2016 low at 1.2461 and is now trading within the daily range of the May 3, 2016 candle. Near-term resistance is expected between the 1.2720-1.2750 area," explained the analysts at Scotiabank.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.