USD/CAD rebounds swiftly from weekly lows, jumps above mid-1.2600s

  • USD/CAD staged a solid intraday bounce from sub-1.2600 levels, or weekly lows.
  • Surging US bond yields benefitted the USD and remained supportive of the move.
  • Bullish oil prices underpinned the loonie and kept a lid on any meaningful gains.

The USD/CAD pair rallied over 60 pips from weekly lows and jumped to fresh daily tops, beyond mid-1.2600s during the early North American session.

The pair showed some resilience below the 1.2600 round-figure mark and witnessed a dramatic intraday turnaround amid resurgent US dollar demand. A sudden pickup in the US Treasury bond yields provided a strong lift to the greenback, which, in turn, was seen as a key factor that prompted some short-covering around the USD/CAD pair.

A violent selloff in the US Treasuries took its toll on the global risk sentiment. This was evident from a steep fall in the equity markets, which provided an additional boost to the safe-haven greenback. The USD bulls seemed unaffected, rather shrugged off the disappointing release of the ADP report for February.

In fact, private-sector employers added 117K jobs during the reported month, fewer than 177K expected and the previous month's upwardly revised reading of 195K. The data pointed to a sluggish recovery in the labour market, though investors remained optimistic amid the progress on a massive US fiscal spending plan.

That said, bullish sentiment around crude oil prices, now up over 1.5% for the day, underpinned the commodity-linked loonie and capped gains for the USD/CAD pair. This makes it prudent to wait for a sustained move beyond the 1.2660 region before positioning for an extension of the recent bounce from multi-year lows.

Wednesday's US economic docket also features the release of the ISM Services PMI. This, along with the US bond yields and the broader market risk sentiment, will influence the USD. Traders might further take cues from oil prices dynamics to grab some meaningful opportunities.

Technical levels to watch


Today last price 1.2654
Today Daily Change 0.0033
Today Daily Change % 0.26
Today daily open 1.2621
Daily SMA20 1.2678
Daily SMA50 1.2721
Daily SMA100 1.2871
Daily SMA200 1.3124
Previous Daily High 1.2698
Previous Daily Low 1.26
Previous Weekly High 1.273
Previous Weekly Low 1.2468
Previous Monthly High 1.287
Previous Monthly Low 1.2468
Daily Fibonacci 38.2% 1.2638
Daily Fibonacci 61.8% 1.2661
Daily Pivot Point S1 1.2582
Daily Pivot Point S2 1.2542
Daily Pivot Point S3 1.2484
Daily Pivot Point R1 1.268
Daily Pivot Point R2 1.2738
Daily Pivot Point R3 1.2777



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

Stop losing your money! 
Learn to trade with us!

24/7 signals + Webinars    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Range play around 200-DMA continues ahead of US CPI

EUR/USD’s rebound falters, as sellers return on Tuesday. EUR/USD continues to move back and forth around 1.1900, lacking a clear directional bias, as investors eagerly await the US CPI data release for a fresh trading impetus.


When are the UK data releases and how could they affect GBP/USD?

The GBP/USD pair is under pressure, testing lows near 1.3725, as the attention turns towards the critical UK macro releases. Although the major remains underpinned by the optimism surrounding the UK re-opening from the covid-induced lockdown restrictions.


Gold defends 21-DMA support amid USD rebound, US CPI eyed

Gold sees some signs of life amid weaker Treasury yields. The yellow metal fell nearly $11 on Monday, extending its two days of declines, as the Treasury yields reversed course and edged slightly higher following a good three-year note auction.

Gold News

Bitcoin a “caged bull” with little resistance ahead as BTC still in price discovery mode

Bitcoin price continues to struggle to reach a record high above $60,000. However, BTC demand and on-chain data suggest a bullish outlook for the pioneer cryptocurrency. Bloomberg analyst Mike McGlone indicates Bitcoin is in price discovery, far from reaching the cycle top.

Read more

Weekly outlook: Inflation in the spotlight

Inflation and inflation expectations are likely to be in the spotlight in the coming week. We saw a decline in US inflation expectations this week and with that, a decline in bond yields that pressured the dollar.

Read more