• The USD remains supported by reviving hopes for a possible Fed rate hike in 2019.
• The uptick seemed rather unaffected by a fresh leg of an up-move in crude oil prices.
• Traders now eye US macro data/speech by BoC Poloz for some meaningful impetus.
The USD/CAD pair held on to its positive tone through the early European session, with bulls now looking to build on the momentum further beyond the 1.3200 handle.
The pair stalled its recent decline from near three-week tops, set last week, and managed to find decent support near the very important 200-day SMA following the release of the latest FOMC meeting minutes on Wednesday.
The US Dollar inched up after minutes from the Federal Reserve's last meeting in January revealed division among the policymakers with regards to future rates policy and revived hopes for a possible rate hike in 2019.
The uptick extended on Thursday, albeit remained capped on the back of a fresh leg of a bullish move in crude oil prices, which tend to underpin demand for the commodity-linked currency - Loonie.
Oil prices hovered close to 2019 highs and remained supported by OPEC-led supply cuts, US sanctions on Venezuela and Iran, though concerns about slowing global economic growth seemed to cap further gains.
It would now be interesting to see if the pair is able to build on the attempted recovery move as the focus now shifts to the US economic docket, highlighting the release of durable goods orders data and Philly Fed manufacturing index.
Later during the US trading session, the BoC Governor Stephen Poloz is scheduled to speak about monetary policy at the Chamber of Commerce of Metropolitan Montreal and might infuse some volatility around the major.
Technical levels to watch
Any subsequent up-move is likely to confront some fresh supply near the 1.3235-40 region (100-day SMA), above which the pair is likely to make a fresh attempt towards reclaiming the 1.3300 round figure mark.
On the flip side, the 1.3145-40 region (200-DMA) might continue to protect the immediate downside, which if broken decisively might turn the pair vulnerable to break below the 1.3100 round figure mark.
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
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.