USD/CAD sticks to intraday gains around 1.3525 amid weaker Crude Oil prices


  • USD/CAD scales higher for the second successive day on Monday amid sliding Oil prices.
  • Retreating US bond yields undermines the USD, though does little to hinder the uptick.
  • The US housing market data could produce short-term trading opportunities later today.

The USD/CAD pair is seen building on last week's rebound from the 1.3440 support zone and gaining some positive traction for the second successive day on Monday. Spot prices stick to modest intraday gains through the first half of the European session and currently trade around the 1.3525 region amid weaker Crude Oil prices.

Market participants remain uncertain about the fuel demand outlook amid expectations that higher borrowing costs will dent the economic activity in the US – the world's largest Oil consumer. This, in turn, drags Crude Oil prices away from a multi-week top touched last Thursday, which is seen undermining the commodity-linked Loonie. Adding to this, softer-than-expected Canadian consumer inflation figures released last week exert additional pressure on the Canadian Dollar (CAD) and lend support to the USD/CAD pair.

Meanwhile, the intraday uptick seems rather unaffected by subdued US Dollar (USD) price action, led by retreating US Treasury bond yields. That said, growing acceptance that the Federal Reserve (Fed) will keep interest rates higher for longer favours the USD bulls and suggests that the path of least resistance for the USD/CAD pair is to the upside. It, however, remains to be seen if spot prices could extend the momentum amid worries about supply disruptions in the Middle East, which could act as a tailwind for Crude Oil prices.

Moving ahead, Monday's release of New Home Sales data from the US, along with the US bond yields and the broader risk sentiment, might drive the USD demand and provide some impetus to the USD/CAD pair. Traders will further take cues from Oil price dynamics to grab short-term opportunities. the focus, however, will remain glued to the US Core PCE Price Index, which will play a key role in influencing the Fed's future policy decisions and determining the near-term trajectory for the currency pair.

USD/CAD

Overview
Today last price 1.3524
Today Daily Change 0.0021
Today Daily Change % 0.16
Today daily open 1.3503
 
Trends
Daily SMA20 1.3476
Daily SMA50 1.3413
Daily SMA100 1.3543
Daily SMA200 1.3478
 
Levels
Previous Daily High 1.3518
Previous Daily Low 1.3462
Previous Weekly High 1.3536
Previous Weekly Low 1.3441
Previous Monthly High 1.3542
Previous Monthly Low 1.3229
Daily Fibonacci 38.2% 1.3496
Daily Fibonacci 61.8% 1.3483
Daily Pivot Point S1 1.347
Daily Pivot Point S2 1.3438
Daily Pivot Point S3 1.3414
Daily Pivot Point R1 1.3526
Daily Pivot Point R2 1.355
Daily Pivot Point R3 1.3582

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD slides to multi-month lows below 1.0650

EUR/USD slides to multi-month lows below 1.0650

EUR/USD stays under heavy bearish pressure and trades at its lowest level since November below 1.0650. Divergent ECB-Fed policy outlooks and the risk-averse market atmosphere keep the US Dollar strongly bid and weigh on the pair.

EUR/USD News

GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends losses and trades at fresh multi-month lows below 1.2450 even after the January month UK GDP was revised higher to 0.3%. The negative shift seen in risk mood fuels another leg higher in the USD and drags the pair lower.

GBP/USD News

Gold advances to new historic high above $2,400

Gold advances to new historic high above $2,400

Gold gathers bullish momentum ahead of the weekend and trades at a new record high above $2,400. Escalating geopolitical tensions help XAU/USD continue to push up despite the broad-based US Dollar strength.

Gold News

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Rich Dad Poor Dad author Robert Kiyosaki says he will not buy Bitcoin ETFs. Kiyosaki stated his dislike for Wall Street’s financial products and preferred packaging his own. 

Read more

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more Premium

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more

US Retail Sales data will provide an updated snapshot of the health of the economy. Chinese GDP may confirm the narrative that Beijing's stimulus is working. UK inflation data may push the Bank of England to early rate cuts.

Read more

Forex MAJORS

Cryptocurrencies

Signatures