|

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

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

More from Christian Borjon Valencia
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD rebounds after falling toward 1.1700

EUR/USD gains traction and trades above 1.1730 in the American session, looking to end the week virtually unchanged. The bullish opening in Wall Street makes it difficult for the US Dollar to preserve its recovery momentum and helps the pair rebound heading into the weekend.

GBP/USD steadies below 1.3400 as traders assess BoE policy outlook

Following Thursday's volatile session, GBP/USD moves sideways below 1.3400 on Friday. Investors reassess the Bank of England's policy oıtlook after the MPC decided to cut the interest rate by 25 bps by a slim margin. Meanwhile, the improving risk mood helps the pair hold its ground.

Gold stays below $4,350, looks to post small weekly gains

Gold struggles to gather recovery momentum and stays below $4,350 in the second half of the day on Friday, as the benchmark 10-year US Treasury bond yield edges higher. Nevertheless, the precious metal remains on track to end the week with modest gains as markets gear up for the holiday season.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid bearish market conditions

Bitcoin (BTC) is edging higher, trading above $88,000 at the time of writing on Monday. Altcoins, including Ethereum (ETH) and Ripple (XRP), are following in BTC’s footsteps, experiencing relief rebounds following a volatile week.

How much can one month of soft inflation change the Fed’s mind?

One month of softer inflation data is rarely enough to shift Federal Reserve policy on its own, but in a market highly sensitive to every data point, even a single reading can reshape expectations. November’s inflation report offered a welcome sign of cooling price pressures. 

XRP rebounds amid ETF inflows and declining retail demand demand

XRP rebounds as bulls target a short-term breakout above $2.00 on Friday. XRP ETFs record the highest inflow since December 8, signaling growing institutional appetite.