USD/CAD soars amid resilient US Dollar and weak oil prices

USD/CAD jumps to near 1.3475 as the US Dollar remains resilient.
Weak oil prices amid expectations of one more interest rate hike from the Fed impact the Canadian Dollar.
US headline and core CPI are expected to maintain a 0.2% pace in July.

Sagar Dua FXStreet

The USD/CAD pair climbs swiftly to near 1.3475 in the European session amid sheer strength in the US Dollar and a sell-off in the oil prices. The Loonie asset delivers a perpendicular upside move amid the US Dollar’s resilience due to the cautious market mood ahead of the United States Consumer Price Index (CPI) data for July.

S&P500 futures post significant losses in London, portraying bearish market sentiment. US equities are expected to open on a bearish note as corporate earnings season reaches a peak. The US Dollar Index prints a fresh three-day high at 102.70 as investors expect stubbornness in the US inflation report for July.

As per the estimates, headline and core CPI maintained a pace of 0.2%. Annual headline CPI rebounded to 3.3% vs. June’s print of 3.0%. Contrary, core inflation that excludes volatile food and oil prices decelerated marginally to 4.7% against a prior reading of 4.8%. A recovery in the US headline inflation is expected due to higher oil prices in June.

Meanwhile, the Canadian Dollar witnesses selling pressure as the labor market remains weak in July. The hiring process slows down sharply as firms remain cautious due to the bleak economic outlook. Also, the Unemployment Rate increased to 5.5%. This would allow the Bank of Canada (BoC) to deliver an unchanged interest rate decision.

On the oil front, oil prices dropped sharply to near $80.00 as investors hope that the Federal Reserve (Fed) could continue tightening policy further amid a tight labor market and expectations of sticky inflationary pressures. It is worth noting that Canada is the leading exporter of oil to the United States and low oil prices impact the Canadian Dollar.

USD/CAD

Overview
Today last price	1.3488
Today Daily Change	0.0118
Today Daily Change %	0.88
Today daily open	1.337

Trends
Daily SMA20	1.3231
Daily SMA50	1.3275
Daily SMA100	1.3399
Daily SMA200	1.3455

Levels
Previous Daily High	1.3399
Previous Daily Low	1.3356
Previous Weekly High	1.3394
Previous Weekly Low	1.3151
Previous Monthly High	1.3387
Previous Monthly Low	1.3093
Daily Fibonacci 38.2%	1.3373
Daily Fibonacci 61.8%	1.3383
Daily Pivot Point S1	1.3351
Daily Pivot Point S2	1.3332
Daily Pivot Point S3	1.3307
Daily Pivot Point R1	1.3394
Daily Pivot Point R2	1.3418
Daily Pivot Point R3	1.3438

Author

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.

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