USD/CAD slumps to 1.2500 as USD selloff intensifies

USD/CAD continues to push lower in the American session.
US Dollar Index extends slide toward 91.50 on Wednesday.
WTI rises more than 4%, trades above $63.

Eren Sengezer FXStreet

The USD/CAD pair rose to a daily high of 1.2576 during the European trading hours but reversed its direction in the second half of the day. As of writing, the pair was trading at its lowest level since March 22 at 1.2499, losing 0.24% on a daily basis.

Oil rally, USD selloff drag USD/CAD

The broad-based selling pressure surrounding the greenback continues to weigh on USD/CAD. Despite a modest rebound witnessed in the benchmark 10-year US Treasury bond yield, the US Dollar Index (DXY) extended its slide after breaking below 92.00 and touched its worst level in more than three weeks at 91.57. At the moment, the DXY is losing 0.26% at 91.60.

While speaking at an event organized by the Economic Club of Washington, FOMC Chairman Jerome Powell said the market should focus on the outcomes rather than the last dot plot. Powell further noted that it was likely for the Fed to start tapering the QE before going for a rate hike.

On the other hand, the sharp upsurge witnessed in crude oil prices is providing a boost to the commodity-related loonie. After the data published by the US Energy Information Administration showed that crude oil inventories in the US declined by 5.9 million barrels in the week ending April 9, the barrel of West Texas Intermediate (WTI) shot higher. Currently, WTI is trading at $63.20, rising 4.5% on a daily basis.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2502
Today Daily Change	-0.0032
Today Daily Change %	-0.26
Today daily open	1.2534

Trends
Daily SMA20	1.2553
Daily SMA50	1.2609
Daily SMA100	1.2699
Daily SMA200	1.2972

Levels
Previous Daily High	1.263
Previous Daily Low	1.2527
Previous Weekly High	1.2635
Previous Weekly Low	1.2502
Previous Monthly High	1.274
Previous Monthly Low	1.2365
Daily Fibonacci 38.2%	1.2566
Daily Fibonacci 61.8%	1.2591
Daily Pivot Point S1	1.2498
Daily Pivot Point S2	1.2461
Daily Pivot Point S3	1.2395
Daily Pivot Point R1	1.26
Daily Pivot Point R2	1.2666
Daily Pivot Point R3	1.2703

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD struggles to hold above 1.1800 ahead of US data

EUR/USD finds it difficult to gather recovery momentum and retreats below 1.1800 in the second half of the day on Thursday. The US Dollar (USD) stays resilient against its peers after the hawkish surprise in FOMC Minutes, weighing on the pair ahead of the next batch of US data.

GBP/USD recovers above 1.3500 amid better mood

GBP/USD finds fresh demand and rises back above 1.3500 in the European session on Thursday. Improving risk sentiment and renewed US Dollar weakness are helping the pair recover ground ahead of mid-tier US data releases and Fedspeak.

Gold retreats from daily highs, trades below $5,000

Gold finds it difficult to stabilize above the $5,000 psychological mark on Thursday and trades slightly below this level in the early American session. Escalating geopolitical tensions in the Middle East help XAU/USD hold its ground, while the broad-based USD strength caps the pair's upside.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.