USD/CAD retreats from tops above 1.2800

Spot clinches fresh 5-day tops above 1.2800.
US-CA yield spreads keeps driving sentiment.
FOMC’s Powell in the limelight later in the session.

Pablo Piovano FXStreet

The greenback is extending its upside momentum vs. its Canadian peer on Tuesday, with USD/CAD climbing to fresh multi-day tops in the 1.2800 neighbourhood.

USD/CAD attention is now on Powell, Poloz

The pair is pushing higher on Tuesday and is prolonging the rally beyond 1.2800 the figure backed by the persistent widening in US-CA yield spread differentials, particularly in the shorter end of the curve.

All the attention around the buck keeps gyrating around the future steps of the US tax reform proposed by the White House, with President Trump expected to meet with Senate Republicans later today ahead of the Senate tax bill vote initially due on Thursday.

In addition, spot should remain under scrutiny in light of the upcoming speech by next Fed Chief J.Powell and the press conference by BoC’s Governor S.Poloz and Deputy Governor C.Wilkins, also expected later in the session.

USD/CAD significant levels

As of writing the pair is gaining 0.16% at 1.2792 facing the initial hurdle at 1.2807 (high Nov.28) seconded by 1.2838 (high Nov.21) and finally 1.2927 (50% Fibo of the 2017 drop). On the other hand, a breach of 1.2661 (low Nov.23) would open the door to 1.2589 (55-day sma) and then 1.2564 (100-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD clings to recovery gains near 1.3550 after UK CPI data

GBP/USD holds recovery near 1.3550 in European trading hours on Wednesday. The UK annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected. Mixed UK inflation data failed to provide any impetus to the British Pound.

EUR/USD advances to 1.1600 as USD slips ahead of Fed Minutes

EUR/USD stretches higher toward 1.1600 in Wednesday's European session. The US Dollar resumes its downside as weak US economic data weigh on expectations of tighter Federal Reserve policy. Traders will take further cues from ECB President Christine Lagarde’s speech and the FOMC Minutes later in the day.

Gold struggles to capitalize on recovery from weekly low as traders await FOMC Minutes

Gold struggles to capitalize on its modest intraday bounce from the weekly low, touched during the Asian session, and currently trades just below $4,350. The US Dollar attracts some sellers, stalling this week's goodish recovery from a two-month low and helping the commodity reverse a part of the previous day's heavy losses.

Shiba Inu's recovery hinges on key support

Shiba Inu recovers slightly, trading at $0.0000044, after finding support around the critical level earlier this week. The dog-themed meme coin shows improving sentiment as social dominance rises, funding rates turn positive, and bullish traders increase their long positions. On the technical side, SHIB suggests a potential recovery if it holds above the key $0.0000043 level.

Inflation prints and FOMC Minutes take centre stage

In the US, the minutes from the FOMC's July meeting are released this evening. Markets are looking for a more detailed sense of the committee's thinking beyond Kevin Warsh's limited forward guidance. Three participants voted in favour of a hike, and since then, several others have flagged willingness to support a hike if warranted by incoming data.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.