USD/CAD resumes declines toward 1.3280 on Oil recovery, comments from BoC’s Wilkins

  • USD/CAD revisits 1.3320 levels on early Friday.
  • Increasing crude oil prices and absence of rate signals from the BoC’s Deputy Governor pleased CAD buyers.
  • Economic calendar is in focus for fresh impulse.

USD/CAD trades near 1.3320 during early Asian sessions on Friday. The quote seems to resume its earlier declines toward 1.3280 support as traders concentrate more on oil recovery and comments from the Bank of Canada’s (BoC) Deputy Governor Carolyn Wilkins. Scheduled economic data from the US and Canada will be in focus going forward.

The USD/CAD pair refrained from extending its pullback much beyond 1.3350 as prices of Oil, Canada’s main export, strengthened on supply challenging scenarios. Main catalysts were OPEC’s February output report, Iraq’s aim for higher crude prices and the US intention to further hurt Iran by cutting its exports off.

Comments from the BoC’s Deputy Governor also helped the pair stretch its declines. While speaking at the Vancouver School of Economics and CFA Society, Wilkins made no mention of the need for the central bank’s future interest rate moves. Traders were seeking any clues for the rate-cuts after the BoC sound pessimistic in its latest appearance.

Looking forward, traders will now concentrate on the second-tier data scheduled for release from the US and Canada. Starting with January month manufacturing shipments from Canada, the anticipated +0.4% growth figure can add strength into the Loonie bulls as its much better than previous -1.3% contraction.

On the other hand, the US may also have some upbeat numbers to question the pair’s strength. Among them, likely improvements in March month NY empire state manufacturing index to 10.0 from 8.8 and a rise of Michigan consumer sentiment index to 95.3 from 93.8 could gain market attention. Also, February month industrial production might rise by +0.4% versus 0.6% decline.

USD/CAD Technical Analysis

100-day simple moving average (SMA) level of 1.3280 continues to remain on sellers’ radar as it holds the gate for extended downward trajectory toward 1.3230 and 200-day SMA level of 1.3175.

Meanwhile, immediate descending trend-line, at 1.3360, seems limiting the pair’s near-term advances, a break of which can recall 1.3410 on the chart.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: bearish strength pointing to lower lows for the year

The EUR/USD pair extended its decline Friday to finish the week sharply lower in the 1.1150 region. The American currency stood victorious on the back of persistent concerns about US-Sino trade tensions and encouraging local data.


GBP/USD: political tensions knocked the Pound ANALYSIS | 14:48 GMT

The GBP/USD pair closed the week in the 1.2710 area, its lowest since mid-January, as the Pound plunged alongside Brexit cross-party talks, a "very negative development," as Irish PM Varadkar said. 


USD/JPY: corrective advance could extend up to 110.50

After advancing for a second consecutive day, the USD/JPY pair closed the week with modest gains just above the 110.00 figure, retreating from a daily high of 110.19. 


Gold breaks to the downside hits 2-week lows near $1275

Gold prices accelerated to the downside today and particularly after the beginning of the American session, resuming the bearish move. The yellow metal is falling for the fourth day in-a-row and it is down almost $30 from the weekly high. 

Gold News

Bitcoin price update: BTC reclaims $7,000, recovery stalled

Bitcoin (BTC) has recovered from a scary flash crash that took it all the way down from $7,800 to as low as $6,512. The first digital coin lost about 16% of its value in a matter of hour with no particular reason .

Read more