- USD/CAD stays depressed while probing the weekly low.
- WTI refreshes multi-week top, US dollar index extends the previous day’s losses.
- Risks linger virus woes and US political turmoil battle stimulus hopes.
- US CPI, Fedspeak to decorate calendar, risk headlines become the key.
USD/CAD remains heavy near the intraday low of 1.2703, down 0.06% on a day, during Wednesday’s Asian session. The loonie pair dropped for the first time in the last four days on Tuesday, while also carrying the losses today, amid the broad US dollar weakness and gains in Canada’s main export item crude oil. It should be noted that the mixed clues to justify trading sentiment coupled be spotted for a bid milder downside bias.
Crude prices recently jumped to the fresh high since February 2020, currently up 0.90% at $53.65, after private oil inventories shrank more than the previous readings. Also favoring the commodity is the broadly risk-on mood and US dollar weakness.
Read: WTI refreshes multi-month high above $53.00 on upbeat API stockpile data, focus on EIA figures
On the contrary, the US dollar index (DXY) drops for the second day while marking a 0.08% intraday loss to 89.96. The greenback’s weakness could be attributed to the political drama in the US relating to President Donald Trump’s impeachment and President-elect Joe Biden’s hint of mammoth fiscal stimulus.
While roiling the mood, worsening coronavirus (COVID-19) conditions in the US, the UK and Europe, not to forget Japan and some parts of Asia, probe vaccination drives. That said, S&P 500 Futures and stocks in Asia-Pacific remain mildly bid but the US 10-year Treasury yields snap seven-day north-run.
Looking forward, risk catalysts to remain in the driver’s seat even as December’s Consumer Price Index (CPI) from the US can offer intermediate moves.
Technical analysis
A one-week-old support line near 1.2700 challenges USD/CAD bears targeting the monthly low around 1.2630. Meanwhile, 21-day SMA and a downward sloping trend line from December 21, respectively around 1.2770 and 1.2820, guard the pair’s short-term upside.
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.
Recommended content
Editors’ Picks
EUR/USD rises toward 1.0700 after Germany and EU PMI data
EUR/USD gains traction and rises toward 1.0700 in the European session on Monday. HCOB Composite PMI data from Germany and the Eurozone came in better than expected, providing a boost to the Euro. Focus shifts US PMI readings.
GBP/USD holds above 1.2350 after UK PMIs
GBP/USD clings to modest daily gains above 1.2350 in the European session on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength.
Gold price flirts with $2,300 amid receding safe-haven demand, reduced Fed rate cut bets
Gold price (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark heading into the European session.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.