|

USD/CAD seeks support around 1.3330 amid risk-off mood, US NFP hogs limelight

  • USD/CAD has sensed demand after dropping to near 1.3330 amid negative market sentiment.
  • Goldman Sachs sees two more interest rate hikes of 25 bps by the Fed in March and May.
  • Oil price is likely to continue their downside as central banks have restricted their monetary policy further.

The USD/CAD pair has witnessed buying interest after a corrective move to near 1.3330 in the Tokyo session. The Loonie asset displayed a corrective move as the US Dollar Index (DXY) showed signs of exhaustion in the upside momentum after reaching to near 101.55.

The risk profile is extremely sour as risk-perceived assets like S&P500 futures have witnessed sheer selling pressure in the Asian session. The three-day winning streak in the S&P500 futures is expected to terminate as investors are worried that solid United States employment costs could dent the declining trend in the Consumer Price Index (CPI). This might result in a continuation of policy tightening by the Federal Reserve (Fed).

For the interest rate guidance, the Goldman Sachs Research team said in its client note that it expects the Fed to hike interest rates by 25 basis points (bps) consecutively in March and May. This way the central bank will reach the terminal rate of 5.00-5.25%. The client note claims that the Gross Domestic Growth (GDP) growth will slow to 1.4% in 2023, reflecting a negative impact from tighter financial conditions.

USD/CAD will see a power-pack action after the release of the United States Nonfarm Payrolls (NFP) data. Analysts at TD Securities expect a 220K increase in payroll and a modest increase in the Unemployment Rate to 3.6%.

On the oil front, the oil price is struggling to hold itself above the critical support of $76.00. The further downside in the oil price looks favored as western central banks have tightened their monetary policy to tame soaring inflation. It is worth noting that Canada is a leading exporter of oil to the United States and lower oil price will impact the Canadian Dollar.

USD/CAD

Overview
Today last price1.333
Today Daily Change0.0017
Today Daily Change %0.13
Today daily open1.3313
 
Trends
Daily SMA201.3383
Daily SMA501.3498
Daily SMA1001.3532
Daily SMA2001.3219
 
Levels
Previous Daily High1.3348
Previous Daily Low1.3262
Previous Weekly High1.3428
Previous Weekly Low1.33
Previous Monthly High1.3685
Previous Monthly Low1.33
Daily Fibonacci 38.2%1.3315
Daily Fibonacci 61.8%1.3295
Daily Pivot Point S11.3268
Daily Pivot Point S21.3222
Daily Pivot Point S31.3183
Daily Pivot Point R11.3353
Daily Pivot Point R21.3393
Daily Pivot Point R31.3438

Author

Sagar Dua

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

More from Sagar Dua
Share:

Editor's Picks

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.

Crypto Today: Bitcoin, Ethereum, XRP risk further decline as market fear persists amid slowing demand

Bitcoin holds $90,000 but stays below the 50-day EMA as institutional demand wanes. Ethereum steadies above $3,000 but remains structurally weak due to ETF outflows. XRP ETFs resume inflows, but the price struggles to gain ground above key support.

Week ahead – US CPI might challenge the geopolitics-boosted Dollar

Geopolitics may try to steal the limelight from US data. A possible US Supreme Court ruling on tariffs could dictate market movements. A crammed data calendar next week, US CPI comes on Tuesday; Fedspeak to intensify.

XRP trades under pressure amid weak retail demand

XRP presses down on the 50-day EMA support as risk-averse sentiment spreads despite a positive start to 2026. XRP faces declining retail demand, as reflected in futures Open Interest, which has fallen to $4.15 billion.