- USD/CAD edged lower on Tuesday and retreated further from 1-1/2-week tops.
- Surging oil prices underpinned the loonie and exerted some downward pressure.
- A subdued USD price action failed to lend any support ahead of US/Canadian data.
The USD/CAD pair edged lower through the early European session and is currently placed near the lower end of its daily trading range, below mid-1.4000s.
The pair came under some selling pressure on Tuesday and retreated further from mid-1.4100s, or 1-1/2 week tops set in the previous session. The downtick was sponsored by a combination of factors, including a further strong recovery in oil prices and a subdued US dollar price action.
Crude oil prices built on its recent strong recovery gains and rallied around 8.5% on Tuesday amid expectations that fuel demand would begin to pick up as governments ease lockdowns. Rallying oil prices provided a goodish lift to the commodity-linked currency – the loonie.
On the other hand, the US dollar failed to capitalize on the previous day's goodish intraday positive move and remained confined in a narrow trading band. This, in turn, did little to impress bullish traders or ease the intraday bearish pressure surrounding the major.
The pair was last seen hovering around 200-hour SMA, which if broken might prompt some aggressive technical selling and pave the way for an eventual break below the key 1.40 psychological mark. Traders now look forward to the US/Canadian macro data for a fresh impetus.
The Canadian economic docket highlights the release of trade balance data, which will be followed by the release of the US ISM Non-Manufacturing PMI. The data might produce some meaningful trading opportunities later during the early North-American session on Tuesday.
Technical levels to watch
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 trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.