- USD/CAD grinds higher around intraday top during the first positive day in three.
- News of Ukraine’s violation of ceasefire propelled USD, oil prices.
- Canada inflation came in stronger, US data was firmer too but FOMC minutes posed cautious optimism.
- No major data on calendar, Fedspeak, risk catalysts are the key for fresh impulse.
USD/CAD stays firmer around 1.2720, following a quick run-up to 1.2734, as market sentiment sour on geopolitical news from Russia during early Thursday morning in Europe.
It should, however, be noted that the recently upbeat prices of WTI crude oil, Canada’s main export item, seem to challenge the USD/CAD bulls of late.
That said, the market sentiment soured on Sputnik’s news saying, “Ukraine fired mortar shells and grenades on Luhansk People's Republic (LPR) locations.” Following that, Reuters quoted other sources to mention, “Russian-backed rebels in eastern Ukraine accused Kyiv government forces on Thursday of using mortars to attack their territory, in violation of agreements aimed at ending the conflict, the RIA news agency said.”
The risk-off mood can well be witnessed in the quick recovery of the US Dollar Index (DXY) and WTI crude oil prices, up 0.12% and 1.7% daily in that order. Also portraying the risk-aversion wave is the downbeat performance of US Treasury yields and stock futures.
Previously, doubts over Russia’s rolling back of some troops from the border and the US-China Phase 1 deal headlines were challenging the market sentiment. However, the oil prices were bearing the burden of positive news concerning the US-Iran deal on denuclearization.
That said, the Canadian Consumer Price Index (CPI) rose at an annual pace of 5.1% in January, above median economist forecasts for a pace of 4.8% and above December's 4.8% YoY rate of price growth, according to data released by Statistics Canada on Wednesday. On the other hand, US Retail Sales and Industrial Production rose notably beyond the market forecasts and previous readouts with the latest MoM figures of 3.8% and 1.4% respectively in January.
To sum up, USD/CAD traders will pay more attention to the risk catalysts than the second-tier US data and Fedspeak for fresh impulse.
MACD conditions aren’t supporting rebound, which in turn challenge the USD/CAD buyers until the quote crosses a six-week-long resistance line, near 1.2780 by the press time.
On the contrary, a downside break of the stated immediate support line, near 1.2670, will highlight convergence of the 100-DMA and 50% Fibonacci retracement (Fibo.) of October-December 2021 upside, close to 1.2625, as the key level for bears to break.s
Additional important levels
|Today last price||1.2723|
|Today Daily Change||0.0039|
|Today Daily Change %||0.31%|
|Today daily open||1.2684|
|Previous Daily High||1.2734|
|Previous Daily Low||1.2664|
|Previous Weekly High||1.2756|
|Previous Weekly Low||1.2636|
|Previous Monthly High||1.2814|
|Previous Monthly Low||1.2451|
|Daily Fibonacci 38.2%||1.2691|
|Daily Fibonacci 61.8%||1.2707|
|Daily Pivot Point S1||1.2654|
|Daily Pivot Point S2||1.2623|
|Daily Pivot Point S3||1.2583|
|Daily Pivot Point R1||1.2724|
|Daily Pivot Point R2||1.2765|
|Daily Pivot Point R3||1.2795|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.