USD/CAD remains capped below 1.2800 handle

Haresh Menghani FXStreet

• Weaker oil prices weigh on commodity-linked Loonie.
• USD holds stable but fails to provide any additional boost.

Having refreshed session lows near the 1.2755 region, the USD/CAD pair regained traction and might now be looking to make a fresh attempt towards conquering the 1.2800 handle.

A modest profit-taking slide around crude oil prices was seen weighed on the commodity-linked currency - Loonie and helped the pair to bounce off around 30-pips from lows. Adding to this, the US Dollar has also managed to rebound from daily lows and further collaborated to the pair's uptick over the past couple of hours.

Despite a good two-way move, the pair might continue with its struggle to decisively break through the 1.2800 handle amid ongoing uncertainty over the fate of a highly-anticipated US tax reform plan.

Hence, it would be prudent to wait for a strong follow-through buying interest before positioning for any additional near-term appreciating move amid empty economic docket.

Technical levels to watch

Momentum beyond the 1.2800 handle is likely to confront fresh supply near the 1.2820 region, above which a bout of short-covering could lift the pair further towards 1.2885 strong hurdle.

On the flip side, mid-1.2700s now seems to have emerged as immediate support, which if broken could accelerate the slide back toward the 1.2700 handle en-route its next major support near the 1.2670-60 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.