USD/CAD remains on the back foot around 1.3290 as WTI takes the bids

  • USD/CAD weakens to sub-1.3300 area amid WTI strength.
  • Canadian CPI indicated that the Bank of Canada could trigger central bank divergence.
  • Canadian Wholesale Sales and the US PMI numbers decorate the economic calendar while Canadian Senators are on the move.

With the strong oil prices and BOC’s likely monetary policy divergence, the USD/CAD pair drops to 1.3290 during Thursday’s Asian session.

Following better than forecast Consumer Price Index (CPI) data from Canada, speculations were on the rounds that the Bank of Canada (BOC) will diverge from the rest of the global central banks.

However, Canadian Senators seem to have sensed the move and are on the run to a special meeting with BOC's Governor Stephen Poloz to discuss trade uncertainties with the US, China, India and Saudi Arabia.

Oil prices recently recovered after headlines from the US and North Korea, also concerning Iran, seem to escalate geopolitical tensions.

Looking forward, Canada’s June month Wholesale Sales and the US Markit Purchasing Managers’ Index (PMI) for August will be the key to follow ahead of the crucial Jackson Hole Symposium.

While Canadian Wholesale Sales is expected to recover from -1.8% to +0.3%, the US Markit Composite PMI is expected to decline to 51.7 from 52.6 whereas it’s the Manufacturing PMI could inflate to 50.5 from 50.4.

Technical Analysis

Only a sustained run-up beyond 1.3350 can propel prices to 1.3380 and June 18 high around 1.3430 otherwise 1.3251/50 support-zone including August 19 low and August 12 high can keep being on sellers’ radar.

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

Latest Forex News

Editors’ Picks

EUR/USD hovers above multi-year lows amid coronavirus fears, ahead of ZEW

EUR/USD is trading just above 1.0820, the lowest since 2017, as the coronavirus outbreak is taking its economic toll on Apple among others. The German ZEW Economic Sentiment figure is eyed.


GBP/USD extends losses to sub-1.3000 area, UK unemployment rate in focus

GBP/USD stays mildly negative just below 1.30 while heading into the London open on Tuesday. UK’s Brexit negotiator shares the same view as PM Boris Johnson, increases the risks of hard departure. UK employment statistics will be the key to clarify on the BOE’s bearish bias.


Forex Today: Coronavirus takes a bite from the apple, Gold gains, Bitcoin bounces

The coronavirus outbreak's economic impact is growing as Apple, the iPhone maker has issued a warning that it is unable to meet its guidance due to production and issues and closed stores in China. The tech giant's announcement has been weighing on the market mood, pushing gold and the yen higher. 

Read more

Gold: Positive beyond six-week-old falling trendline

Gold prices take the bids above $1585, +0.35%, during the pre-European trading on Tuesday. The yellow metal recently broke a downward sloping trend line stretched from January 08. Early-month top on the buyer’s radar.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info