USD/CAD retraces its recent losses amid stable oil prices, improves to near 1.3350

USD/CAD attempts to gain ground on stable Crude oil prices.
WTI price holds ground on the uncertainty around the Israel-Gaza conflict.
Fed members emphasize flexibility in monetary policy; triggering a risk-on sentiment.

Akhtar Faruqui FXStreet

USD/CAD consolidates near 1.3350 during the Asian session on Tuesday, attempting to retrace its recent losses registered on Monday. The Canadian Dollar (CAD) could have some balance on steady Crude oil prices.

West Texas Intermediate (WTI) price hovers near $71.00 per barrel, by the press time. The Crude oil prices move sideways on fears over the escalation of the Israel-Gaza war into a regional conflict. US Secretary of State Antony Blinken arrived in Tel Aviv to discuss on communication with Arab leaders.

The upcoming releases of Canadian International Merchandise Trade Balance and Building Permits on Tuesday provide insights into Canada's economic performance. A forecasted decline in the Canadian International Merchandise Trade Balance from 2.97 billion to 2.0 billion for November suggests a potential shift in the imports and exports of Canadian goods.

Furthermore, the anticipated decrease in Canadian November Building Permits from 2.3% to 2.0% indicates a potential moderation in construction activities. Construction data is closely monitored as it reflects broader trends in the real estate and housing sectors, contributing to the movement of corporate investments, which tends to cause some volatility to the CAD.

The cautious stance expressed by Atlanta Fed President Raphael W. Bostic and US Fed Governor Michelle W. Bowman has implications for market sentiment and the US Dollar (USD). Bostic's anticipation of two quarter-point cuts by the end of 2024 reflects a proactive approach in response to the decline in inflation, indicating a willingness to use monetary policy tools to support the economy.

Bowman's acknowledgment that the current policy stance appears sufficiently restrictive but also considering the possibility of lowering the Fed's policy rate if inflation moves closer to the 2% target adds to the dovish sentiment. This stance emphasizes flexibility in monetary policy, triggering a risk-on sentiment. Investors may seek higher-yielding assets, potentially putting downward pressure on the US Dollar.

USD/CAD: additional important levels

Overview
Today last price	1.3356
Today Daily Change	0.0002
Today Daily Change %	0.01
Today daily open	1.3354

Trends
Daily SMA20	1.3333
Daily SMA50	1.3542
Daily SMA100	1.3577
Daily SMA200	1.3481

Levels
Previous Daily High	1.3405
Previous Daily Low	1.3345
Previous Weekly High	1.3399
Previous Weekly Low	1.3229
Previous Monthly High	1.362
Previous Monthly Low	1.3178
Daily Fibonacci 38.2%	1.3368
Daily Fibonacci 61.8%	1.3382
Daily Pivot Point S1	1.3331
Daily Pivot Point S2	1.3308
Daily Pivot Point S3	1.3271
Daily Pivot Point R1	1.3391
Daily Pivot Point R2	1.3428
Daily Pivot Point R3	1.3451

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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