- 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
|Today last price||1.3253|
|Today Daily Change||0.0013|
|Today Daily Change %||0.10|
|Today daily open||1.324|
|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.