USD/CAD retreats toward multi-month low amid WTI recovery, trade positive headlines


  • The geopolitical risk surrounding Iran helps oil extend the latest recovery.
  • The US-China trade positive sentiment favors commodity-linked currencies.
  • The USD struggles to carry previous strength forward.

With the oil prices gaining on the back of political headlines concerning Iran, USD/CAD retreats to its multi-month lows as it trades near 1.3060 during early Monday morning in Asia.

The Canadian Dollar (CAD) dropped Friday after monthly Retail Sales lagged behind the consensus. The overall US Dollar (USD) strength, due to reduced expectations of heavy monetary policy easing by the US Federal Reserve, also favored the pair buyers.

However, geopolitical factors supported oil, a key export item for Canada, off-late and triggered the quote’s pullback towards multi-month low.

Not only the US but the UK is also now at loggerheads with Iran after the Middle East nation seized British oil tanker in Strait of Hormuz.

Additionally, news reports from China signal the dragon nation’s readiness to import more of the US agricultural products, which in turn offers a boost to the US-China trade deal prospects.

Traders may now await fresh clues from Canadian Wholesales Sales (MoM) for May while keeping an eye over political news/headlines. The Wholesale Sales growth is likely to come in softer at 0.2% from 1.7% earlier.

Technical Analysis

1.3000 continues to be the key support for the pair, contrast to 21-day exponential moving average (EMA) level of 1.3110 being an immediate upside barrier.

    1. R3 1.3202 
    2. R2 1.3156 
    3. R1 1.3108
  1. PP  1.3062
    1. S1  1.3013
    2. S2  1.2967
    3. S3  1.2919

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD retreats after strong NFP, weak German data

EUR/USD is trading below   1.11 after US Non-Farm Payrolls beat expectations with 266K and mixed wage growth. Earlier, weak German data weighed on the euro. Updates on trade are awaited.

EUR/USD News

GBP/USD shrugs off strong NFP, focuses on UK elections

GBP/USD is trading below 1.3150 but off the post-NFP lows. The US gained more jobs than expected. The Conservatives remain in the lead ahead of the debate between PM Johnson and Labour leader Corbyn.

GBP/USD News

US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP

Recent US economic indicators have been downbeat, but they include silver linings and are backed by robust consumption. Valeria Bednarik, Joseph Trevisani, and Yohay Elam...

Read more

Gold drops to fresh multi-day lows on upbeat NFP report

Gold faded an intraday bullish spike to the $1480 area and tumbled to fresh multi-day lows, around the $1465 region in reaction to upbeat US monthly jobs report.

Gold News

USD/JPY: bearish ahead of US employment figures

Japanese data missed the market’s expectations, triggering fresh concerns about the economy. Focus on US employment figures, market players anticipate dismal numbers. USD/JPY is technically bearish could break below the 108.00 level.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures