- Overall USD strength, Crude weakness propels USD/CAD further up towards key resistance confluence.
- OPEC refrains from any change to production cuts, the US President Trump readies to talk to Iran.
- The US data, trade/political news will keep entertaining traders.
The US Dollar’s (USD) overall strength and WTI weakness keep firming the USD/CAD pair up towards key upside barrier as it takes the bids to 1.3215 during early Friday.
The pair gained traction after the US President Donald Trump showed readiness to talk to Iran and North Korea in a bid to end the political tussles between the economies, which in turn dragged the Crude, highest export item of Canada. However, comments from the US Treasury Secretary Steve Mnuchin still highlight the Trump administration’s maximum pressure policy.
The momentum recently strengthened as the US Dollar (USD) carries the gains from the upbeat inflation data and also because of the European Central Bank’s (ECB) dovish monetary policy decision. Also supporting the move was Canadian New Housing Price Index data that disappointed Canadian Dollar (CAD) buyers with -0.1% mark against 0.0% forecast.
It should also be noted that trade optimism could do little for the Canadian Dollar (CAD) as odds of the Bank of Canada’s (BOC) dovish appearance have increased recently.
With no major data/events up for publishing from Canada, investors will keep an eye over the US Retail Sales and trade/political headlines for fresh impulse. “We expect retail sales to advance 0.3% m/m in August following the stronger 0.7% rise in the prior month. The gain should be helped by another firm increase in sales in the key control group as consumer fundamentals remain sound. In the details, the steady increase in core sales and a small rebound in auto purchases should more than offset a decline in sales at gasoline stations, which reflects a notable drop in gasoline prices in August,” says TD Securities.
Technical Analysis
Unless breaking 1.3233/37 resistance-confluence including 21 and 50-day exponential moving averages (EMA), prices are less likely to rise towards 1.3300. However, 1.3145/35 area including the latest lows and early-July tops could restrict pair’s near-term declines.
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.
Recommended content
Editors’ Picks
AUD/USD bounces to 0.6450, shrugs off mixed Australian jobs data
AUD/USD is rebounding to test 0.6450 amid renewed US Dollar weakness in the Asian session on Thursday. The pair reverses mixed Australian employment data-led minor losses, as risk sentiment recovers.
USD/JPY drops to test 154.00 on Japan's intervention warnings
USD/JPY extends losses to test 154.00 in Asian trading on Thursday. The pair is undermined by the latest US Dollar pullback, Japan's FX intervention risks and a softer risk tone. Focus shifts to more Fedspeak and US data.
Gold price finds buyers again near $2,355 as USD licks its wounds
Gold price is attempting a tepid bounce in the Asian session, having found fresh demand near $2,355 once again. Gold price capitalizes on a softer risk tone and an extended weakness in the US Treasury bond yields, despite the recent hawkish Fed commentary.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price was not spared from the broader market crash instigated by a weakness in the Bitcoin market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Investors hunkering down
Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus after witnessing significant market movements in recent weeks.