|

USD/CAD slumps to near 1.3450 as US Dollar weakens on dismal market mood

  • USD/CAD tumbles to 1.3450 as higher risk appetite strengthens the appeal of risk-sensitive assets.
  • The US Dollar fails to capitalize on hawkish FOMC minutes.
  • Investors await further guidance from the US preliminary S&P Global PMI and Canadian Retail Sales data.

The USD/CAD pair slides to near 1.3450 in the London session on Thursday as the outlook for risk-perceived assets has turned bullish. The Loonie asset weakens as the US Dollar is facing an intense sell-off despite easing hopes of rate cuts by the Federal Reserve (Fed) before the June monetary policy meeting.

S&P500 futures have posted stellar gains in the European session, portraying cheerful market sentiment. The US Dollar Index, which gauges the Greenback’s value against six rival currencies, refreshes a two-week low near 103.70. 10-year US Treasury yields have dropped to 4.31%.

The US Dollar failed to rebound even though the Federal Open Market Committee (FOMC) minutes for the January policy meeting, released on Wednesday, indicated that policymakers are not interested in reducing interest rates too soon. Most Fed policymakers are still not convinced that inflation will sustainably return to the 2%.

Meanwhile, investors await the preliminary S&P Global PMI data for February, which will be published at 14:45 GMT. The Manufacturing PMI is forecasted to decrease to 50.5 from 50.7 in January. The Services PMI that represents the service sector, which accounts for two-thirds of the United States economy, is expected to release at 52.0, lower than the prior reading of 52.5.

On the Canadian Dollar front, investors await the Retail Sales data for December, which will be published at 13:30 GMT. Investors anticipate monthly Retail Sales rose by 0.8% after contracting 0.2% in November. In the same period, Retail Sales excluding autos are anticipated to have risen by 0.7% against a decline of 0.5%. An upbeat Retail Sales data would push back hopes of rate cuts by the Bank of Canada (BoC).

USD/CAD

Overview
Today last price1.3449
Today Daily Change-0.0057
Today Daily Change %-0.42
Today daily open1.3506
 
Trends
Daily SMA201.3473
Daily SMA501.3409
Daily SMA1001.3546
Daily SMA2001.3478
 
Levels
Previous Daily High1.3536
Previous Daily Low1.3494
Previous Weekly High1.3586
Previous Weekly Low1.343
Previous Monthly High1.3542
Previous Monthly Low1.3229
Daily Fibonacci 38.2%1.351
Daily Fibonacci 61.8%1.352
Daily Pivot Point S11.3488
Daily Pivot Point S21.347
Daily Pivot Point S31.3446
Daily Pivot Point R11.353
Daily Pivot Point R21.3554
Daily Pivot Point R31.3572

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

GBP/USD back to 1.3250, down modestly for the day

GBP/USD now comes under fresh downside pressure and recedes toward the mid-1.3200s on Tuesday, partially reversing the optimism seen at the beginning of the week. Meanwhile, Cable’s bearish tone follows the resumption of the upside traction in the Greenback, always amid the sharp rally in USD/JPY.

EUR/USD looks inconclusive in the low 1.1400s

EUR/USD alternates gains with losses in the 1.1420 region in the latter part of the NA session on turnaround Tuesday. The pair’s vacillating price action comes amid the lack of clear direction in the US Dollar. Meanwhile, market participants are expected to gear up for the upcoming key releases on the US docket and developments from the ECB Forum in Sintra.

Gold seems vulnerable around $4,000 amid a bullish USD

Gold trades with a mild negative bias around $4,000 following the previous day's two-way price swings as the US Dollar stands firm amid safe-haven demand, bolstered by uncertainty surrounding US-Iran talks. Meanwhile, Tuesday's strong labor market data reaffirmed bets for a Fed rate hike in 2026 . This further underpins the buck and keeps the non-yielding bullion close to the YTD trough set the previous day.

Ethereum: Sharplink makes first treasury purchase in 2026 amid ETH's fall from grace

Ethereum treasury firm Sharplink resumed accumulation of the second-largest cryptocurrency by market capitalization last week after months on the sidelines. The Florida-based firm acquired 10,000 ETH last week at an average price of $1,611 per ETH, marking its first purchase since October. The move has pushed its holdings to 886,725 ETH worth roughly $1.4 billion at the time of writing.

Why a hawkish Bank of Japan could trigger the next Bitcoin sell-off

The Japanese Yen hits a 40-year low of 162.00 against the US Dollar, raising concerns about intervention or additional rate hikes by the Bank of Japan. BoJ may sell US Treasuries to buy back Yen, potentially pushing US bond yields higher and making Bitcoin less attractive to investors.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.