USD/CAD struggles below 1.3000, hangs near two-week low ahead of US CPI


  • USD/CAD turns lower for the fourth straight day and is pressured by a combination of factors.
  • Bullish oil prices underpin the loonie and act as a headwind amid sustained USD selling bias.
  • The market focus remains glued to the release of the crucial US consumer inflation figures.

The USD/CAD pair struggles to capitalize on its modest uptick on Tuesday and attracts fresh selling in the vicinity of the 1.3000 psychological mark. The pair turns lower for the fourth successive day and drops the 1.2970-1.2965 area during the first half of the European session, back closer to over a two-week low touched the previous day.

Crude oil prices reverse the early lost ground and hold steady near a one-week high amid concerns about tight global supply, fueled by Russia's threat to cut oil flows to any country that backs a price cap. This continues to underpin the commodity-linked loonie and acts as a headwind for the USD/CAD pair. The US dollar, on the other hand, remains depressed near the monthly low and turns out to be another factor exerting downward pressure on the major.

Given that the markets already seem to have priced in a 75 bps Fed rate hike at the September meeting, the prevalent risk-on mood is seen weighing on the safe-haven buck. Furthermore, signs of a sustained decline in the US inflation lead to a modest downtick in the US Treasury bond yields and contributes to the offered tone surrounding the greenback. That said, traders might refrain from placing aggressive bets ahead of the US consumer inflation figures.

The crucial US CPI report, due later during the early North American session, will play a key role in influencing the Fed's policy outlook and dictate the near-term trajectory for the USD. Traders will further take cues from OPEC’s monthly outlook report, which will impact oil price dynamics and produce short-term opportunities around the USD/CAD pair.

Technical levels to watch

USD/CAD

Overview
Today last price 1.2972
Today Daily Change -0.0017
Today Daily Change % -0.13
Today daily open 1.2989
 
Trends
Daily SMA20 1.3035
Daily SMA50 1.2957
Daily SMA100 1.2895
Daily SMA200 1.2786
 
Levels
Previous Daily High 1.3049
Previous Daily Low 1.2964
Previous Weekly High 1.3209
Previous Weekly Low 1.2982
Previous Monthly High 1.3141
Previous Monthly Low 1.2728
Daily Fibonacci 38.2% 1.2996
Daily Fibonacci 61.8% 1.3017
Daily Pivot Point S1 1.2952
Daily Pivot Point S2 1.2915
Daily Pivot Point S3 1.2867
Daily Pivot Point R1 1.3038
Daily Pivot Point R2 1.3086
Daily Pivot Point R3 1.3123

 

 

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

GBP/USD resumes upside toward 1.3300 ahead of BoE rate call

GBP/USD resumes upside toward 1.3300 ahead of BoE rate call

The GBP/USD gains traction and approaches 1.3300 in European trading on Thursday, having found buyers near 1.3150. A broad US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements. 

GBP/USD News
EUR/USD rises further toward 1.1200, focus shifts to ECB-speak

EUR/USD rises further toward 1.1200, focus shifts to ECB-speak

EUR/USD stays strongly bid toward 1.1200 in the European session on Thursday. The pair capitalizes on a renewed US Dollar retreat and an upbeat mood. Traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed. 

EUR/USD News
Gold hovers close to new high of $2,600 after Fed meeting

Gold hovers close to new high of $2,600 after Fed meeting

Gold (XAU/USD) edges higher and trades back in the $2,580s on Thursday after falling to the $2,540s following the US Federal Reserve (Fed) decision on interest rates the prior day.

Gold News
BoE expected to keep interest rate unchanged at 5% as price pressures persist

BoE expected to keep interest rate unchanged at 5% as price pressures persist

After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.

Read more
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures