USD/CAD pares part of overnight strong gains, weaker below 1.3200 handle

Haresh Menghani FXStreet

• Consolidative USD price action does little to provide any fresh bullish impetus.
• A goodish rebound in oil prices underpin Loonie and exert some pressure.
• Traders now eye today’s economic docket for some meaningful opportunities.

After an initial uptick to 1.3220 area, the USD/CAD pair turned lower and eroded a part of overnight post-BoC strong up-move.

On Wednesday, the pair initially tumbled to near four-week lows in reaction to the Bank of Canada's (BoC) decision to raise benchmark interest rate by 25 bps to 1.50%.

The bearish pressure quickly faded and the pair once again managed to find decent support near the 1.3065 region, rallying around 150-pips from intraday lows during the post-meeting press conference.

The BoC Governor Stephen Poloz warned that the economy might slow down in wake of growing trade tensions, which was perceived as dovish signal and prompted some aggressive selling around the Canadian Dollar.

This coupled with, a combination of supporting factors, ranging from resurgent US Dollar demand and a sharp decline in oil prices, provided an additional boost and further collaborated to the pair's strong upsurge back above the 1.3200 handle.

With the USD consolidating overnight gains, a goodish recovery in crude oil prices underpinned the commodity-linked currency - Loonie and exerted some downward pressure on Thursday.

Moving ahead, today economic docket, featuring the release of US consumer inflation figures and Canadian New Housing Price Index (NHPI), will now be looked upon for some fresh impetus later during the early North-American session.

Technical levels to watch

The 1.3180 level now seems to protect the immediate downside, which if broken could accelerate the fall back towards 1.3140-35 horizontal support before the pair eventually drops back to the 1.3100 handle.

On the upside, a sustained move beyond the 1.3210 level now seems to pave the way for an extension of the bullish trajectory towards 1.3265 intermediate supply zone en-route the 1.3300 round figure mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD risks a deeper drop below 1.1750

EUR/USD keeps its vacillating mood in place as the the NA session drwas to a close on Tuesday, hovering below the 1.1800 hurdle amid acceptable gains in the US Dollar. In the meantime, market participants and the FX galaxy are expected to closely follow President Trump’s SOTU speech around 2AM GMT.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Ripple’s DeFi shift in focus: Navigating XRPL EVM sidechain growth, XRPFi migration and liquidity

Ripple (XRP) has continued to trade under pressure, extending its decline by approximately 63% from the record high of $3.66 in July. The remittance token is trading above support at $1.35, while its upside appears limited by key supply zones, starting with $1.40, at the time of writing on Tuesday.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.