|

USD/CAD retreats from daily tops around 1.2700 after FOMC minutes

  • USD/CAD hovers around 1.2668 after the unveiling of FOMC’s last meeting minutes.
  • FOMC Minutes: Some participants would like to adjust the QE’s taper pace and raise rates sooner than anticipated if inflation runs hot.
  • The US Dollar Index posts day-after-day new 16-month highs close to 97.00.

The USD/CAD slides from daily tops around 1.2700, down some 0.09%, trading at 1.2661 during the New York session at the time of writing. A risk-off market sentiment spurred demand for the greenback, as it keeps posting new year-to-date highs versus most G8 currencies, except for the Canadian dollar, as the FOMC’s last meeting minutes were unveiled.

On Wednesday, the Federal Reserve unveiled the last FOMC meeting minutes, which showed that some participants would like to adjust the QE’s taper pace and raise rates sooner than anticipated if inflation runs hot.

According to Reuters, “some participants suggested that reducing the pace of net asset purchases by more than $15B each month could be warranted.” Further added and It is worth noting that “some participants preferred a somewhat faster pace of reductions that would result in an earlier conclusion to net purchases.”

In the meantime, the US Dollar Index measures the greenback’s performance against a basket of six rivals, is up 0.41%, sitting at 96.80 at press time, but earlier reached a new 16-month high at 96.93.

Earlier in the New York session, the Initial Jobless Claims for the week ending on November 20 increased to 199K, better than the 260K estimated by analysts, the lowest since 1969. Further, the US GDP for Q3 grew by 2.1%. In line with market participants’ expectations.

Moving to the Federal Reserve’s favorite gauge for inflation, the Personal Consumption Expenditure (PCE) Price Index increased by 4.1% YoY in October, in line with the median economist forecasts and confirmed a 0.4% rise from last month’s upwardly revised reading of 3.7%.

USD/CAD Price Forecast: Technical outlook

The USD/CAD pair retreated from 1.2700s daily tops, at press time is trading below the November 23 low at 1.2660. In the case of accomplishing a daily close beneath the abovementioned, it could form a gravestone-doji, which indicates intense selling pressure above the open/close of Wednesday’s price action, opening the door for a further downward move.

In that outcome, the first support level would be the psychological 1.2600. A break of the latter would expose the 100-day moving average (DMA) at 1.2557, immediately followed by the 50-DMA at 1.2529, and then the 1.2500 figure.

USD/CAD

Overview
Today last price1.2661
Today Daily Change-0.0011
Today Daily Change %-0.09
Today daily open1.2672
 
Trends
Daily SMA201.25
Daily SMA501.2534
Daily SMA1001.256
Daily SMA2001.2471
 
Levels
Previous Daily High1.2745
Previous Daily Low1.2666
Previous Weekly High1.2663
Previous Weekly Low1.2493
Previous Monthly High1.2739
Previous Monthly Low1.2288
Daily Fibonacci 38.2%1.2696
Daily Fibonacci 61.8%1.2715
Daily Pivot Point S11.2643
Daily Pivot Point S21.2615
Daily Pivot Point S31.2564
Daily Pivot Point R11.2722
Daily Pivot Point R21.2773
Daily Pivot Point R31.2802

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

More from Christian Borjon Valencia
Share:

Editor's Picks

USD/JPY trims losses; focus is back to 156.00

USD/JPY now bounces off the area of multi-month lows and appears headed toward the 156.00 region ahead of the opening bell in Asia. The sharp pullback in spot comes in response to the sudden strengthening of the Japanese Yen, reflecting growing conviction among investors that the BoJ could deliver another interest rate hike as early as its September 18 policy meeting.

AUD/USD looks constructive above 0.7200

AUD/USD adds to Wednesday’s advance, reaching fresh four-month highs north of 0.7200 the figure late on Thursday. The pair’s solid performance follows the sharp sell-off in the US Dollar while market participants gear up for the release of US NFP on Friday.

Gold struggles to extend the bounce past $4,500

Gold adds to Wednesday’s gains and reclaims the area near the key $4,500 mark per troy ounce on Thursday. The strong decline in the US Dollar coupled with further weakness in US Treasury yields across the board also bolsters the move higher in the precious metal.

Bitcoin and Gold Outlook: BTC and XAU recover as US ISM Services PMI edges higher in August
Bitcoin (BTC) strongly rises to trade above the pivotal $80,000 level on Thursday. The Crypto King is rallying alongside broader cryptocurrency prices following the release of the United States (US) Services PMI. Gold (XAU/USD) is similarly bullish, trading at $4,500 at the time of writing. The metal is up over 2% on the day, signaling the return of bulls as market sentiment improves.
Canada's 6.4% unemployment rate: Why Friday's jobs print puts the BoC's slack story on trial
The Bank of Canada (BoC) held at 2.25% on Wednesday for a seventh straight meeting and rewrote the one paragraph that still argues against a hike. In July, the BoC’s statement called the labour market soft and pinned the unemployment rate inside a 6.5%-7% range it had held since the end of 2024. July's Labour Force Survey (LFS) then printed 6.4%.
Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.