USD/CAD: Recovery underway amid pullback in crude, US Dollar

Traders reassess two-day declines after API data, greenback buying.
The US, Canada and EIA inventory reports will be crucial to watch next.

Anil Panchal FXStreet

The USD/CAD pair seesaws around 1.3300 during early Wednesday. The quote is likely deviating from its last two-day moves as it follows a recent uptick in the US Dollar (USD) coupled with the pullback in Crude prices. Economic data from the US and Canada will join EIA’s official weekly crude stock report to direct near-term trade sentiment.

USD/CAD, also known as Loonie, witnessed downside pressure since Monday as weak USD and rising crude prices favored sellers. The greenback was majorly bearing the burden of expected recession due to yield signals whereas supply crunch at Venezuela pleased energy traders.

Off-late, the WTI crude witnessed pullback after the American Petroleum Institute (API) released results of its oil stock survey concerning the private industries for the week ended on March 22. As per the report, 1.9 million barrels were added to the inventory than the previous contraction of 2.13 million barrels.

The US Dollar (USD) seems taking advantage of the overall market pessimism surrounding Brexit and likely rate-cuts from the Reserve Bank of New Zealand (RBNZ) and the Reserve Bank of Australia (RBA) during initial Wednesday.

Next up in the focus will be January month trade balance numbers from the US and Canada followed by official EIA crude oil stocks change for the week ended on March 25.

Forecasts suggest the US trade balance number to rise to $-57.0 billion from $-59.8 billion whereas the same figures from Canada could also advance to $-3.50 billion from $-4.59 billion (revised). Also, the Energy Information Administration (EIA) crude oil stocks might follow the API’s footsteps and register an increase of +0.309 million versus -9.589 million prior.

USD/CAD Technical Analysis

In addition to providing a sustained break of 1.3420 resistance-line stretched since early January, the quote should also cross current month high around 1.3470 to target 1.3500 and 1.3565 during further upside.

Alternatively, 1.3370 and 1.3330 can entertain short-term sellers ahead of highlighting 100-day simple moving average (SMA) near 1.3310.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.