USD/CAD rebounds above 1.3650 amid firmer US Dollar, lower crude oil prices


  • USD/CAD holds positive ground near 1.3685 on the rebound of USD on Tuesday. 
  • Fed’s Barkin noted the current rate level should cool the economy enough to bring down inflation to the 2% goal.
  • The BoC potentially getting closer to rate cuts relative to the Fed, which might drag the CAD lower. 

The USD/CAD pair gains traction around 1.3685 during the early European trading hours on Tuesday. The rebounds of Greenback and the decline of oil prices provide some support to the pair. Investors will take more cues from the Canadian Ivey Purchasing Managers Index (PMI) for April, due later in the day. 

Recent US labor market data and comments from Federal Reserve (Fed) officials have triggered the speculation of rate cuts. Richmond Fed President Thomas Barkin said on Monday that the current interest rate level should cool the economy enough to bring down inflation to the Fed's 2% goal. New York Fed President John Williams noted that "eventually" the US Fed will cut interest rates, although he did not give a time frame.

Meanwhile, the US Dollar (USD) strengthens broadly amid the uncertainties surrounding the geopolitical tensions in the Middle East, which boost the safe-haven currencies like the Greenback. Israel's war cabinet voted to continue the military attack on Hamas, and Israeli troops launched strikes on Gaza's southernmost city on Monday, hours after Hamas announced it would accept terms based on a cease-fire proposal by Egyptian and Qatari mediators, per New York Times. 

On the Loonie front, an FX strategist from CIBC Capital Markets expects that there are going to be some headwinds for the Canadian Dollar (CAD) in the near term as the Bank of Canada (BoC) potentially gets closer to rate cuts relative to the Fed. This, in turn, is likely to cap the downside of USD/CAD put for the time being. Apart from this, the decline in oil prices near two-month lows exerts some selling pressure on the commodity-linked Loonie as Canada is the leading exporter of oil to the United States.  

USD/CAD

Overview
Today last price 1.3684
Today Daily Change 0.0018
Today Daily Change % 0.13
Today daily open 1.3666
 
Trends
Daily SMA20 1.3711
Daily SMA50 1.3611
Daily SMA100 1.3513
Daily SMA200 1.3556
 
Levels
Previous Daily High 1.3697
Previous Daily Low 1.3648
Previous Weekly High 1.3785
Previous Weekly Low 1.361
Previous Monthly High 1.3846
Previous Monthly Low 1.3478
Daily Fibonacci 38.2% 1.3667
Daily Fibonacci 61.8% 1.3678
Daily Pivot Point S1 1.3644
Daily Pivot Point S2 1.3621
Daily Pivot Point S3 1.3594
Daily Pivot Point R1 1.3693
Daily Pivot Point R2 1.372
Daily Pivot Point R3 1.3742

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

GBP/USD eases to 1.2700, awaits BoE policy announcements

GBP/USD eases to 1.2700, awaits BoE policy announcements

GBP/USD is trading close to 1.2700, undermined by a renewed US Dollar strength early Thursday. The downtick could lack follow-through as traders look forward to the BoE policy announcements before placing further bets.

GBP/USD News

EUR/USD remains pressured below 1.0750 ahead of US data

EUR/USD remains pressured below 1.0750 ahead of US data

EUR/USD is trading under pressure below 1.0750 in the European morning on Thursday. The pair facing fresh selling interest, as the US Dollar finds its feet amid firmer US Treasury bond yields. ECB Bulletin, US data and Fedsepak are next in focus. 

EUR/USD News

Gold: Will XAU/USD buyers recapture key resistance near $2.340?

Gold: Will XAU/USD buyers recapture key resistance near $2.340?

Gold price regains upside traction early Thursday after the Juneteenth holiday lull. The US Dollar pauses its decline as Treasury bond yields edge higher amid risk aversion. The daily RSI gradually moves above the midline, supporting the Gold price upside.

Gold News

Bitcoin price continues to plummet as whale activities deepen

Bitcoin price continues to plummet as whale activities deepen

Bitcoin's price fell below $65,000 on Wednesday following Increased whale activities that may be sell orders. Meanwhile, hedge funds have experienced a drag in their Bitcoin exposure, which may be fueled by consistent outflows among Bitcoin ETFs.

Read more

BoE set to leave interest rates unchanged could deliver cautious message on inflation

BoE set to leave interest rates unchanged could deliver cautious message on inflation

BoE is expected to keep its policy rate unchanged for the seventh consecutive meeting on Thursday, despite the recent acceleration of disinflationary pressures in the UK and speculation of two interest rate cuts this year.

Read more

Forex MAJORS

Cryptocurrencies

Signatures