USD/CAD spikes above mid-1.2800s, highest since Dec. 20

Haresh Menghani FXStreet

• Weaker oil prices weigh on commodity-linked Loonie.
• USD consolidates recent gains and remains supportive.
• Sliding US bond yields now seemed to cap gains.

The USD/CAD pair finally broke out of its Asian/early European session consolidation phase and refreshed session tops in the last hour.

The pair's latest leg of up-move over the past hour or so, to the highest level since December 20, lacked any fundamental trigger and was led by some renewed weakness in crude oil prices. In fact, WTI crude oil extended overnight slide and is currently placed at near two-week lows, which was eventually seen weighing on the commodity-linked currency - Loonie and driving the pair higher.

Further gains, however, remained capped amid subdued US Dollar price-action, primarily on the back of weaker US Treasury bond yields. Despite firming expectations that the Fed could opt for a faster monetary policy tightening cycle, sliding US bond yields failed to assist the greenback to build on its recent upsurge and was eventually seen keeping a lid on the pair's bullish momentum.

Focus now shifts to important US macroeconomic releases, with the key focus on ISM manufacturing PMI, which along with the Fed Chair Jerome Powell's second appearance before the Congress would be looked upon for some fresh bullish impetus.

Technical levels to watch

A follow-through buying interest could the pair towards the 1.2900 handle, above which the bullish momentum is likely to get extended beyond 1.2915-20 supply zone towards reclaiming the key 1.30 psychological mark.

On the flip side, any meaningful retracement below the 1.2830-25 region is likely to find support near the 1.2800 handle, which if broken might prompt some additional long-unwinding trade and drag the pair further towards the 1.2755 support level.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD weakens below 1.3450 as US-Iran uncertainty boosts safe-haven US Dollar

The GBP/USD pair loses ground to near 1.3425 during the early Asian session on Tuesday. Uncertainty surrounding US-Iran talks drives traders toward a safe-haven currency such as the US Dollar against the British Pound. All eyes will be on the US July jobs data, which is due later on Friday.

EUR/USD flatlines above 1.1500 as traders turn cautious ahead of US NFP data

The EUR/USD pair holds steady around 1.1505 during the early European trading hours. Markets remain cautious ahead of the crucial US July jobs report, which is due later this week. Eurozone inflation ticked up in July, bolstering the case for a rate hike from the European Central Bank. The headline Eurozone inflation rose to 2.9% YoY in July from 2.8% in June, in line with expectations.

Gold consolidates above $4,050 amid Fed hike bets and Iran uncertainty

Gold seesaws between tepid gains and minor losses during the Asian session as traders seem hesitant and opt to wait for further developments surrounding the Middle East crisis. The US Dollar struggles to build on the previous day's solid bounce from the lowest level since Mid-June and acts as a tailwind for the bullion. However, the uncertainty over US-Iran peace talks helps limit the downside for the buck.

Ripple and Stellar steady as derivatives data points to easing downside pressure

Ripple and Stellar show mixed price action, with XRP holding above the key $1 support zone while XLM faces rejection at $0.173. Meanwhile, improving derivatives metrics alongside fading bearish momentum suggest that the downside pressure may be easing for both altcoins. Derivatives data shows mild bullish sentiment among traders.

NFP week: What awaits Bitcoin and Gold

This is an NFP week as markets brace for the release of a large influx of job market statistics. The data rollout begins with the JOLTS Job Openings report on Tuesday, continues with the ADP Employment report on Wednesday and Jobless claims on Thursday, and finishes with the Nonfarm Payrolls report on Friday.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.