USD/CAD recoils from five-month highs near 1.29 on Canada election, oil recovery

USD/CAD edges lower in the Asian session on Tuesday amid corrective pullback.
Mixed Canadian Federal Election polls, oil recovery influence Loonie’s performance.
US Dollar Index remains strong above 93.00 despite mild correction of late.

Rekha Chauhan Independent Analyst

The USD/CAD pair trades just below 1.2800 on Tuesday following the previous session’s spectacular gains. The pair peaked at five-month high near 1.2900 in the overnight session, backed by the greenback’s strength.

At the time of writing, USD/CAD is trading at 1.2794, down 0.25% for the day.

The major theme for today’s session remains the upcoming Canadian election’s result, where a clear majority of Justin Trudeau’s party would bring much needed political stability in the country.

Nevertheless, as per the Canadian network CTV’s decision desk Justin Trudeau’s Liberal Party is winning the election while declaring Trudeau as the next Prime Minister for the third straight term. However it was not clear the party had a minority or majority.

Meanwhile, WTI oil prices locked gains as experts pointed to signs of tightening US oil supplies. ANZ analyst said, global utilities are switching to fuel oil due to rising gas and coal prices. Furthermore, reduced output from the Gulf of Mexico after Hurricane Ada implied lesser supply in near term.

As for now, traders are waiting for Canada’s New Housing Price Index, US Housing Starts, and Building Permits to take fresh trading impetus.

USD/CAD levels to consider

USD/CAD

Overview
Today last price	1.2786
Today Daily Change	-0.0038
Today Daily Change %	-0.30
Today daily open	1.2826

Trends
Daily SMA20	1.2644
Daily SMA50	1.2606
Daily SMA100	1.2411
Daily SMA200	1.2524

Levels
Previous Daily High	1.2896
Previous Daily Low	1.2751
Previous Weekly High	1.2774
Previous Weekly Low	1.2601
Previous Monthly High	1.2949
Previous Monthly Low	1.2453
Daily Fibonacci 38.2%	1.2841
Daily Fibonacci 61.8%	1.2807
Daily Pivot Point S1	1.2753
Daily Pivot Point S2	1.268
Daily Pivot Point S3	1.2608
Daily Pivot Point R1	1.2898
Daily Pivot Point R2	1.297
Daily Pivot Point R3	1.3043

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

AUD/USD holds above 0.70 as RBA hike becomes a done deal

The Aussie Dollar dives 0.10% versus the US Dollar as market sentiment deteriorates amid fading US-Iran peace hopes, pushing US bond yields higher while US equity markets fall. Also, price action remained subdued, ahead of the Reserve Bank of Australia monetary policy decision. The AUD/USD trades at 0.7016.

USD/JPY climbs back toward 158.00 after BoJ minutes amid firm USD

USD/JPY finds dip-buyers and reverses part of Friday's slide driven by speculation that authorities will step in again to prop up the Japanese Yen. However, the BoJ's dovish Minutes cap the JPY. Meanwhile, the US Dollar regains traction as the US-Iran standoff supports crude oil prices, fueling inflation fears and reaffirming bets for an October Fed rate hike. This further supports the pair, driving it back toward 158.00.

Gold tumbles below $4.150 as US bond yields, oil prices rise

Gold price falls to near $4,125 during the early Asian session on Tuesday. The precious metal faces some selling pressure as rising US Treasury yields and expectations of further Federal Reserve interest rate hikes sap demand for the non-yielding metal.

HBAR, QNT rally as AI safety and tokenized deposits fuel institutional momentum

Hedera (HBAR) and Quant (QNT) are among the crypto market’s strongest performers on Monday, as fresh developments around artificial intelligence (AI) and tokenized banking drive renewed institutional attention. HBAR briefly surged above $0.130 before settling around $0.123, gaining 30% over the past 24 hours.

The week ahead: A key moment for the global economy as threats rise

UK diesel hits a record, as economic concerns rise. The market expects an aggressive Fed rate hiking cycle, but is it necessary? Oil supply concerns ease, even as oil prices rise. What’s next for the AI trade.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.