USD/CAD stays in the negative territory below 1.2450, eyes on US inflation data

  • USD/CAD is edging lower ahead of the American session.
  • US Dollar Index continues to pull away from multi-month high set on Tuesday.
  • WTI extends downward correction, tests critical $80 level.

The USD/CAD pair stays under modest bearish pressure during the European hours on Wednesday with the greenback struggling to find demand ahead of key events. As of writing, the pair was down 0.16% on a daily basis at 1.2445.

DXY turns south on Wednesday

Falling US Treasury bond yields seem to be weighing on the dollar on Wednesday. the benchmark 10-year US T-bond yield, which lost more than 3% on Tuesday, is currently losing 0.5% at 1.572%. Reflecting the USD's poor performance, the US Dollar Index (DXY) is falling 0.25%. Meanwhile, US stock index futures are rising between 0.15% and 0.5% on the day, making it difficult for the dollar to attract investors.

Later in the session, the US Bureau of Labor Statistics will release the September inflation report. Investors expect the Core Consumer Price Index (CPI) to stay unchanged at 4% on a yearly basis. A stronger-than-forecast inflation reading is likely to provide a boost to the greenback in the second half of the day.

In the late American session, the FOMC's September Meeting Minutes will be looked upon for fresh insights regarding the timing and the pace of reduction in asset purchases. Previewing this event, "FOMC Meeting Minutes from the bank's September decision will likely serve as a reminder that the Fed is about to taper in November – boosting the dollar," said FXStreet Analyst Yohay Elam. 

FOMC Minutes Preview: Fed to reiterate taper message, sending the dollar up, stocks down.

On the other hand, the barrel of West Texas Intermediate (WTI) is trading in the negative territory near $80 and helping USD/CAD limit its losses for the time being.

Technical levels to watch for


Today last price 1.2447
Today Daily Change -0.0022
Today Daily Change % -0.18
Today daily open 1.2469
Daily SMA20 1.2647
Daily SMA50 1.2627
Daily SMA100 1.2491
Daily SMA200 1.2512
Previous Daily High 1.2498
Previous Daily Low 1.2434
Previous Weekly High 1.2655
Previous Weekly Low 1.2452
Previous Monthly High 1.2896
Previous Monthly Low 1.2494
Daily Fibonacci 38.2% 1.2459
Daily Fibonacci 61.8% 1.2474
Daily Pivot Point S1 1.2436
Daily Pivot Point S2 1.2403
Daily Pivot Point S3 1.2372
Daily Pivot Point R1 1.25
Daily Pivot Point R2 1.2531
Daily Pivot Point R3 1.2564



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more