USD/CAD stays flat on the day near 1.3060


  • US Dollar Index stays calm despite uninspiring data.
  • Oil loses traction after rising on renewed US-China trade optimism.
  • FOMC is expected to lower the policy rate by 25 basis points on Wednesday.

After climbing higher toward the 1.31 handle during the European trading hours, the USD/CAD came under modest bearish pressure as the CAD capitalized on rising crude oil prices and gathered strength against its rivals. 

United States (US) President Donald Trump on Monday said that they were "ahead of schedule" with finalizing the phase-one of the trade deal with China and added that he was expecting to sign the deal at the APEC meeting in Chile in November to ease worries over a dismal demand outlook. The barrel of West Texas Intermediate rose to a fresh monthly high of $56.90 on these comments but erased its gains to return to the $56 area.

USD waits for FOMC

On the other hand, today's data from the United States revealed that the trade deficit narrowed to $70.4 billion in September from $73.06 billion in August. Other data showed that the Chicago Fed's National Activity Index slumped to -0.45 from 0.15 and the Dallas Fed Manufacturing Index dropped to -5.1 to miss the market expectation of 1.4.

The Greenback largely ignored the data and the US Dollar Index extended its sideways grind near the 97.70/80 area as investors seem to be refraining from making large bets ahead of Wednesday's critical Federal Open Market Committee (FOMC) meeting. 

Previewing the event, “Given the lack of pushback against that pricing by the recent parade of Fedspeak, it’s a relative safe prediction that they deliver another cut to take the fed funds target range to 1.50-1.75%,” said Deutsche Bank analysts.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3064
Today Daily Change 0.0006
Today Daily Change % 0.05
Today daily open 1.3058
 
Trends
Daily SMA20 1.3207
Daily SMA50 1.324
Daily SMA100 1.3212
Daily SMA200 1.3281
 
Levels
Previous Daily High 1.3078
Previous Daily Low 1.3052
Previous Weekly High 1.3139
Previous Weekly Low 1.3052
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3062
Daily Fibonacci 61.8% 1.3068
Daily Pivot Point S1 1.3047
Daily Pivot Point S2 1.3036
Daily Pivot Point S3 1.302
Daily Pivot Point R1 1.3074
Daily Pivot Point R2 1.309
Daily Pivot Point R3 1.3101

 

 

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