USD/CAD retreats from session highs, trades around 1.3250 ahead of US CPI data


  • US Dollar Index loses traction in the last hour.
  • WTI clings to small daily gains near $55 handle.
  • Coming up: Consumer Price Index (CPI) data from US.

The USD/CAD pair started the week in a calm manner and closed the day with small gains above the 1.32 handle before stretching higher on Tuesday. After reaching a session high of 1.3265, however, the pair reversed its direction and started to retrace its daily advance. As of writing, the pair was up 0.08% on the day at 1.3250.

Following Monday's sharp drop, the 10-year US Treasury bond has gone into a consolidation phase and allowed the Greenback to stage a technical correction. Nevertheless, in the absence of fundamental drivers, the US Dollar Index, which rose to 97.64 earlier in the session, turned flat on the day at 97.40 to cause the bullish pressure to lose strength.

Eyes on US inflation data

In the early trading hours of the American session, the US Bureau of Labor Statistics will release its inflation report. Markets expect the core Consumer Price Index (CPI) that excludes volatile food and energy prices to remain unchanged at 2.1% on a yearly basis in July. A softer-than-expected CPI reading could weigh on the USD and force the pair to edge lower toward the 1.32 handle.

On the other hand, after posting daily gains for the third straight trading day on Monday, the barrel of West Texas Intermediate is clinging to small gains near $55 ahead of the weekly crude oil stock report published by the American Petroleum Institue and helps the commodity-related Loonie stay resilient against its American counterpart.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3253
Today Daily Change 0.0013
Today Daily Change % 0.10
Today daily open 1.324
 
Trends
Daily SMA20 1.3168
Daily SMA50 1.319
Daily SMA100 1.3304
Daily SMA200 1.331
Levels
Previous Daily High 1.3251
Previous Daily Low 1.3203
Previous Weekly High 1.3345
Previous Weekly Low 1.3178
Previous Monthly High 1.3215
Previous Monthly Low 1.3016
Daily Fibonacci 38.2% 1.3232
Daily Fibonacci 61.8% 1.3221
Daily Pivot Point S1 1.3212
Daily Pivot Point S2 1.3184
Daily Pivot Point S3 1.3164
Daily Pivot Point R1 1.326
Daily Pivot Point R2 1.3279
Daily Pivot Point R3 1.3307

 

 

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

Latest Forex News

Editors’ Picks

GBP/USD extends gains toward 1.31 after upbeat UK wage figures

GBP/USD is extending its gains and advancing toward 1.31 after UK wage figures beat expectations with 3.2% annually. The unemployment rate remained at 3.8% in November. 

GBP/USD News

EUR/USD recaptures 1.11 amid upbeat German figures, USD weakness

EUR/USD is trading above 1.11 after the German ZEW Economic Sentiment beat with 26.7 points. Presidents Trump and Macron agreed not to slap tariffs on each others' countries. The US dollar is retreating.

EUR/USD News

Market delays the trip to the moon

The crypto markets continue to turn to a new bullish phase. This turnaround began at the beginning of the year after a consolidation phase that started in mid-2019. 

Read more

Gold retreats from 2-week tops, drifts into negative territory

Gold failed to capitalize on its early uptick to near two-week tops and dropped to fresh session lows, around the $1560 region in the last hour.

Gold News

USD/JPY: Weaker near 110.00 amid China virus fears, BOJ's status-quo

The Japanese yen retains the bid tone following the Bank of Japan's (BOJ) status-quo, keeping USD/JPY under pressure near the 110 level amid risk-off market profile. S&P 500 futures drop 0.40% while the US Treasury yields are down over 1.50%, as the sentiment is hit by the coronavirus outbreak. 

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures