USD/CAD posts modest losses below 1.2700 as focus shifts to Powell speech

  • USD/CAD is edging lower for the third straight day.
  • WTI trades in a tight range near $53 on Thursday.
  • US Dollar Index holds near 90.30 as investors await FOMC Chairman Powell's speech.

The USD/CAD pair closed in the negative territory for the second straight day on Wednesday and seems to be having a tough time staging a rebound on Thursday. As of writing, the pair was down 0.15% on the day at 1.2675.

DXY stays in consolidation above 90.00

During the Asian trading hours, reports suggesting that President-elect Joe Biden will unveil a stimulus plan worth around $2 trillion provided a boost to the US Treasury bond yields and helped the greenback stay resilient against its rivals. The US Dollar Index (DXY) is currently flat on the day at 90.35 as investors remain on the sidelines ahead of FOMC Chairman Jerome Powell's speech at 1730 GMT.

Powell will be speaking at an online event and market participants will look for fresh clues regarding possible adjustments to the Federal Reserve's asset purchase program. Since the beginning of the year, T-bond yields have been impacting the USD's market valuation and a sharp reaction to Powell's remarks in yields could drive USD/CAD's movements in the second half of the day. Moreover, the US Department of Labor's weekly Initial Jobless Claims will be featured in the US economic docket as well.

Meanwhile, the barrel of West Texas Intermediate (WTI) is trading in a narrow band near $53 on Thursday. If Biden's plan includes additional direct payments to Americans, crude oil prices could push higher on an improved energy demand outlook and help CAD gather strength against its rivals.

Technical levels to watch for


Today last price 1.268
Today Daily Change -0.0020
Today Daily Change % -0.16
Today daily open 1.27
Daily SMA20 1.277
Daily SMA50 1.2881
Daily SMA100 1.3044
Daily SMA200 1.3347
Previous Daily High 1.2747
Previous Daily Low 1.268
Previous Weekly High 1.2798
Previous Weekly Low 1.263
Previous Monthly High 1.301
Previous Monthly Low 1.2688
Daily Fibonacci 38.2% 1.2706
Daily Fibonacci 61.8% 1.2722
Daily Pivot Point S1 1.2671
Daily Pivot Point S2 1.2643
Daily Pivot Point S3 1.2605
Daily Pivot Point R1 1.2738
Daily Pivot Point R2 1.2776
Daily Pivot Point R3 1.2804



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News