USD/CAD retreats to 1.3200 area on broad USD weakness

US President Trump's meeting with FOMC's Powell weighs on USD.
US Dollar Index extends daily slide toward 97.70.
Crude oil remains under pressure to help pair keep losses limited.

Eren Sengezer FXStreet

The USD/CAD pair lost its traction during the American trading hours and fell to a fresh session low of 1.3201 pressured by a broad-based USD weakness. As of writing, the pair was trading at 1.3210, losing 0.1% on a daily basis.

Earlier in the session, the Federal Reserve in a statement announced that the Federal Open Market Committee (FOMC) Chairman Jerome Powell met with US President Donald Trump and Treasury Secretary Steven Mnuchin. Following the meeting, Trump, via Twitter, said that they have discussed "interest rates, negative interest, low inflation, easing, dollar strength."

The US Dollar Index, which tracks the USD's value against a basket of six major currencies, turned south on Trump's comments and was last down 0.26% on the day at 97.75.

Trade headlines push crude oil prices lower

On the other hand, after CNBC's Beijing Bureau Chief, Eunice Yoon, reported that China was pessimistic about reaching a trade deal with the US, crude oil met a fresh selling wave. The barrel of West Texas Intermediate (WTI) broke below the $57 handle and made it difficult for the commodity-related CAD to continue to gather strength. At the moment, the WTI is down 1.85% on the day at $56.70.

There won't be any significant macroeconomic data releases on Thursday and investors will be waiting for Wednesday's inflation report from Canada and FOMC October meeting minutes.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3203
Today Daily Change	-0.0024
Today Daily Change %	-0.18
Today daily open	1.3227

Trends
Daily SMA20	1.3154
Daily SMA50	1.3209
Daily SMA100	1.3201
Daily SMA200	1.3277

Levels
Previous Daily High	1.3254
Previous Daily Low	1.3216
Previous Weekly High	1.3272
Previous Weekly Low	1.3212
Previous Monthly High	1.3349
Previous Monthly Low	1.3042
Daily Fibonacci 38.2%	1.3231
Daily Fibonacci 61.8%	1.324
Daily Pivot Point S1	1.3211
Daily Pivot Point S2	1.3195
Daily Pivot Point S3	1.3173
Daily Pivot Point R1	1.3249
Daily Pivot Point R2	1.3271
Daily Pivot Point R3	1.3287

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD stays below 1.1850 after dismal German sentiment data

EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls toward 1.3550, pressured by weak UK jobs report

GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.