USD/CAD steadily moves back above 1.3500 mark, lacks follow-through buying

USD/CAD reverses an intraday dip and climbs back above the 1.3500 mark.
Softer Oil prices undermine the Loonie and act as a tailwind for the major.
A positive risk tone weighs on the safe-haven USD and might cap the upside.

Haresh Menghani FXStreet

The USD/CAD pair attracts some buyers near the 1.3480 region on Tuesday and for now, seems to have stalled the overnight retracement slide from over a one-week high. Spot prices climb back above the 1.3500 psychological mark during the early North American session, albeit the intraday uptick lacks bullish conviction.

Crude Oil prices languish near a one-week low, which, in turn, is seen undermining the commodity-linked Loonie and lending some support to the USD/CAD pair. Data released earlier today showed China's consumer inflation hit an 18-month low and producer price inflation contracted at a steady pace. This suggested that a post-COVID recovery in the world's second-largest economy was losing steam and raised concerns about a recovery in fuel demand.

The upside for the USD/CAD pair, however, remains capped amid the emergence of fresh selling around the US Dollar (USD). A generally positive tone around the equity markets dents the Greenback's relative safe-haven status, though speculations that the Federal Reserve (Fed) may continue raising interest rates should help limit the downside. In fact, the markets are now pricing in a greater chance of another 25 bps lift-off at the next FOMC meeting in May.

The bets were lifted by the mostly upbeat US monthly employment details (NFP) released on Friday, which, for the time being, puts a floor under the US Treasury bond yields and could act as a tailwind for the USD. This, in turn, supports prospects for the resumption of the USD/CAD pair's recent recovery move from the 1.3400 mark, or its lowest level since February 16 touched last week. Traders, however, seem reluctant ahead of this week's key event/data risks.

The Bank of Canada (BoC) is scheduled to announce its monetary policy decision on Wednesday, which will be accompanied by the release of the latest consumer inflation figures from the US. The market focus, meanwhile, will remain glued to the FOMC meeting minutes, also due on Wednesday. This, along with the US monthly Retail Sales data on Friday, will play a key role in influencing the USD and provide a fresh directional impetus to the USD/CAD pair.

Technical levels to watch

USD/CAD

Overview
Today last price	1.3506
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.3509

Trends
Daily SMA20	1.361
Daily SMA50	1.3557
Daily SMA100	1.3529
Daily SMA200	1.3393

Levels
Previous Daily High	1.3554
Previous Daily Low	1.3485
Previous Weekly High	1.3537
Previous Weekly Low	1.3406
Previous Monthly High	1.3862
Previous Monthly Low	1.3508
Daily Fibonacci 38.2%	1.3511
Daily Fibonacci 61.8%	1.3528
Daily Pivot Point S1	1.3478
Daily Pivot Point S2	1.3447
Daily Pivot Point S3	1.3409
Daily Pivot Point R1	1.3547
Daily Pivot Point R2	1.3585
Daily Pivot Point R3	1.3616

Author

Haresh Menghani

FXStreet

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

EUR/USD faces some resistance near 100-SMA on H4, around 1.1830 zone

The EUR/USD pair gains some follow-through positive traction for the second consecutive day and climbs to the 1.1830 region during the Asian session on Thursday. The US Dollar remains on the back foot amid concerns about the economic fallout from US President Donald Trump's erratic trade policies and acts as a tailwind for spot prices.

GBP/USD extends recovery to near 20-day EMA as US Dollar weakens

The Pound Sterling holds onto weekly gains around 1.3565 against the US Dollar during the Asian trading session on Thursday. The GBP/USD pair trades firmly as the US Dollar remains under pressure due to uncertainty surrounding the United States trade policy outlook.

Gold looks to build on strength beyond $5,200, eyes monthly peak amid safe-haven flows

Gold touches a fresh daily high heading into the European session on Thursday, with bulls looking to build on the momentum beyond the $5,200 mark. This marks the second straight day of a positive move and is supported by sustained safe-haven flows, bolstered by uncertainties surrounding US President Donald Trump's trade policies and US-Iran nuclear talks.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.