USD/CAD retakes 1.25 mark, focus remains on today’s key macro data


   •  Attempts a tepid recovery as USD rebounds.
   •  CAD further weighed down by weaker oil prices.
   •  Focus on today’s important US/Canadian macro data. 

The USD/CAD pair staged a modest recovery from 2-1/2 month lows and might now be looking to build on its momentum back above the key 1.2500 psychological mark. 

The pair extended overnight bearish break below the weekly trading range and touched an intraday low level of 1.2483 during the Asian session on Friday. However, a pickup in the US Dollar demand, supported by an uptick in the US Treasury bond yields, stall the pair's downslide. 

Meanwhile, crude oil retreated a bit from 2015 highs and was seen weighing on the commodity-linked currency - Loonie, eventually supporting the pair's rebound from the lowest level since Oct. 20.

Traders also seemed inclined to lighten their bets ahead of today's important macro releases from the US and Canada. Hence, a bout of short-covering could also be one of the factors contributing to the pair's recovery of around 20-pips from lows.

The release of US monthly jobs report (NFP) will be the next focal point and grab all the attention later during the early NA session. Today's economic docket also features the release of Canadian employment details and trade balance data, along with the US ISM non-manufacturing PMI.

Technical levels to watch

Immediate resistance is now pegged near the 1.2530-35 area, above which a fresh bout of short-covering could assist the pair to head back towards testing 100-day SMA resistance near the 1.2595-1.2600 region.

On the flip side, weakness below 1.2485-80 zone could drag the pair further towards mid-1.2400s, which if broken is likely to extend the downslide towards sub-1.2400 level.
 

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

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds on to weekly gains, aims to 1.2100

EUR/USD pressures this week high at 1.2079 after the EU services sector moved back into expansion territory according to Markit, the first time since August.

EUR/USD News

GBP/USD extends decline towards the 1.3800 price zone

Upbeat UK data fell short of boosting the pound, hurt by Brexit jitters in Ireland. US macroeconomic figures making the difference in the dollar’s favor.

GBP/USD News

Bitcoin, Ethereum and XRP plummet, breaching critical support levels

Bitcoin price has dropped 12.7% since yesterday and shows no signs of stopping. Ethereum price follows the pioneer crypto’s lead and might retest $2,000 again. Unlike BTC or ETH, XRP price shows signs of recovery as long as it stays above a critical demand zone.

Read more

XAU/USD drops below $1,780 area as US T-bond yields rebound

Gold lost its traction after climbing toward $1,800 on Friday. 10-year US Treasury bond yield is up nearly 2%. Latest PMI data from US underlined strong price pressures.

Gold News

Bionano Genomics Inc runs into technical resistance, put options may work here

BNGO shares have continued to suffer post the retail meme crowd moving on. BNGO shares bounce from lows as DeMark buy signal flashes on Monday. BNGO shares trend up to resistance at 100 day moving average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures