USD/CAD returns above 1.3400 amid a weaker market sentiment and lower Oil prices

Guillermo Alcala FXStreet

The US Dollar is building up favoured by a weaker market sentiment.
Oil prices are trading lower, increasing negative pressure on the CAD.
Later today Canada's business outlook and manufacturing sales might give some support to the loonie.

The US Dollar is staging a comeback on Monday’s European session. The sourer market sentiment, with equity markets dipping to negative territory after a positive opening, and the lower oil prices are pushing the pair higher.

Investors seem to have digested the weaker-then-expected US PPI data seen on Friday, with the Greenback building up in a light trading session. The calendar is light and US stock markets are closed on bank holidays, this is leading to choppy and volatile trading.

Oil prices, Canada’s main export, are extending their reversal from Friday’s highs above $75. This is adding negative pressure on the loonie.

Later today, the Bank of Canada Business Outlook Survey and Manufacturing Sales data might give some support to the CAD. On Tuesday, Canadian CPI will be observed with attention for fresh cues on the BoC’s monetary policy ahead of Friday’s retail sales data.

In the US, the highlights of the week will be the US Retail Sales, due on Wednesday and the Michigan Consumer Sentiment Index, on Friday.

From a technical perspective, the US Dollar seems gaining bullish traction, aiming for 1.3455, the 61.8% retracement of the December sell-off. Above here, the next resistance is 1.3480 and 1.3545. Supports are 1.3375 and 1.3335.

Technical levels to watch

USD/CAD

Overview
Today last price	1.342
Today Daily Change	0.0013
Today Daily Change %	0.10
Today daily open	1.3407

Trends
Daily SMA20	1.3319
Daily SMA50	1.3511
Daily SMA100	1.357
Daily SMA200	1.348

Levels
Previous Daily High	1.3412
Previous Daily Low	1.3343
Previous Weekly High	1.3443
Previous Weekly Low	1.3341
Previous Monthly High	1.362
Previous Monthly Low	1.3178
Daily Fibonacci 38.2%	1.3386
Daily Fibonacci 61.8%	1.3369
Daily Pivot Point S1	1.3363
Daily Pivot Point S2	1.3319
Daily Pivot Point S3	1.3294
Daily Pivot Point R1	1.3432
Daily Pivot Point R2	1.3456
Daily Pivot Point R3	1.35

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

AUD/USD climbs as Fed’s Williams push the brakes on rates

The Aussie Dollar registers a gain of over 0.34% against the US Dollar on Tuesday as news flows remain quiet, with US data coming mixed, while hostilities in the Middle East continue. The AUD/USD trades at 0.6983.

USD/JPY extends retreat below 158.50 as intervention risks loom

USD/JPY is dropping below 158.50 in the Asian session on Tuesday, snapping a two-day winning streak and pulling back from an over two-week top touched the previous day, despite Japan's soft PPI inflation print. Bulls turn cautious amid speculation that authorities will step in to prop up the Japanese Yen, which, in turn, weighs on the pair.

Gold: Bears struggle to breach below $4,150

Gold now gives away its initial gains and resumes its decline, revisiting the $4,160 region per troy ounce on Tuesday. The precious metal’s pullback comes despite the fresh downward trend in the Greenback in combination with a mixed performance of US Treasury yields across the board and easing tensions on the geopolitical front.

Ethereum holds $2,500 as open interest drops to lowest level since February

Ethereum (ETH) quickly bounced back above $2,500 on Tuesday after sharp Asian equity selloffs briefly spilled into the crypto market. South Korea's KOSPI declined 5.4% while Japan's Nikkei 225 dropped by 1.8%. The volatility spike bled into cryptocurrencies, triggering a cascade of forced liquidations.

S&P 500 earnings just hit a record. The AI data centre bill hasn't landed yet

S&P 500 companies are on track for a third straight quarter of earnings growth above 25%, according to FactSet. Their profit margin hit 17% in the April-June quarter, the highest in FactSet data going back to 2009. The cash behind those earnings has been shrinking for two years, and almost all of the shrinkage is in the handful of companies building data centres for artificial intelligence (AI).

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?