USD/CAD steady, hovering around 1.3000 after US data and Trump’s comments

CAD lags among commodity-link currencies on Thursday.
DXY heads from lowest close since July weakened by risk appetite.
Trump warns that Canada must make concessions to reach trade deal.

Matías Salord FXStreet

The USD/CAD pair moved all day sideways around 1.3000, consolidating the decline of the previous two trading days. It bottomed at 1.2975 earlier today, after the release of US data but rebounded and peaked at 1.3024.

US Inflation data came in below expectations for the second day in a row. The CPI rose 0.2% in August, below the 0.3% of market consensus and the annual rate eased from 2.9% to 2.7%. The greenback lost ground across the board after the data and during the last hours it has been able to stabilized. The DXY is falling for the second day in a row and trades at 94.57, the lowest since August 30. The worst performer among majors is the Japanese yen affected by positive market sentiment.

Regarding the loonie, it is modestly lower against AUD and NZD, probably affected by the correction in crude oil prices and on the back of US President Trump comments. According to the Wall Street Journal, Trump told on Wednesday that he wants to rename the North American Free Trade Agreement (NAFTA) to USMC and warned about dropping the C, if Canada fails to make concessions.

USD/CAD Technical levels

Intraday the pair is moving sideways but after the recent slide the short-term tone now favors the downside. Today’s consolidation seems normal after a 170 slide in two days.

To the downside, support levels might be located at 1.2775/80 (Sep 12, 13 low), 1.2950 and 1.2935. On the upside, resistance could be seen at 1.3025 (Sep 13 high), 1.3040 (Sep 11 low) and 1.3075 (Sep 12 high).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.