- USD/CAD edges higher, snaps two-day downtrend amid subdued session.
- US dollar struggles for clear direction after Wednesday’s pullback amid mixed clues.
- WTI consolidates the heaviest daily gains in three months on covid woes, stockpile increase.
- ECB, second-tier US-Canada data will be important for fresh impulse.
USD/CAD edges higher around 1.2580, up 0.20% intraday, during Thursday’s Asian session. The loonie pair dropped the most in over six weeks the previous day, marking the two-day fall, before reversing from the weekly low so far during the day.
Although the US Dollar Index (DXY) remains sidelined after stepping back from a three-month high, the pullback in oil prices seems to have favored the USD/CAD buyers of late. It should be noted that the weakness in Antipodeans, amid the coronavirus woes, could also be linked to the pair’s latest performance.
Upbeat equities renewed economic hopes and allowed the greenback buyers to take a breather on Wednesday. The same offered additional strength to the WTI prices, Canada’s key export, which marked the strongest daily gains since April.
However, an increase in the official oil inventories, published by the US Energy Information Administration (EIA), +2.11M versus -4.46M forecast and -7.89M prior, dragged the oil prices. Also, escalating Delta covid variants, with multi-day high infections in Australia and Tokyo, not to forget gradually increasing daily cases in the UK and China, offer extra burden on the USD/CAD prices.
Amid these plays, US Treasury yields remain directionless as Japanese markets are off but the stock futures print mild gains by the press time.
Looking forward, US Chicago Fed Manufacturing Index, Weekly Jobless Claims and Existing Home Sales will join Canadian Employment Insurance Beneficiaries Change to entertain intraday traders. However, major attention will be given to the European Central Bank (ECB) monetary policy meeting even if the policymakers aren’t expected to act.
With the bullish MACD and upbeat RSI backing the bounce off short-term support line, around 1.2550, USD/CAD is on the way to challenge April’s top near 1.2655. Though, any further upside will struggle around 1.2675 and March’s high near 1.2740 before challenging the monthly peak of 1.2807.
Additional important levels
|Today last price||1.2579|
|Today Daily Change||0.0024|
|Today Daily Change %||0.19%|
|Today daily open||1.2555|
|Previous Daily High||1.273|
|Previous Daily Low||1.2526|
|Previous Weekly High||1.2621|
|Previous Weekly Low||1.2427|
|Previous Monthly High||1.2487|
|Previous Monthly Low||1.2007|
|Daily Fibonacci 38.2%||1.2604|
|Daily Fibonacci 61.8%||1.2652|
|Daily Pivot Point S1||1.2477|
|Daily Pivot Point S2||1.2399|
|Daily Pivot Point S3||1.2272|
|Daily Pivot Point R1||1.2682|
|Daily Pivot Point R2||1.2808|
|Daily Pivot Point R3||1.2886|
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.