USD/CAD struggles near 1-month lows, around 1.3200 handle ahead of US CPI

Haresh Menghani FXStreet

• The USD bulls remain on the defensive amid dovish Fed expectations and exert pressure.
• The ongoing bullish run in oil prices underpin Loonie and add to the recent selling bias.
• Today’s key release of the US consumer inflation figures eyed for some fresh impetus.

The USD/CAD pair held on to its weaker tone through the mid-European trading session, albeit once again managed to find some support ahead of 100-day SMA.

After yesterday's attempted rebound, the pair came under some renewed selling pressure on Friday and drifted back closer to over one-month lows amid some renewed US Dollar selling bias.

The Fed Chair Jerome Powell's comments on Thursday, reiterating the idea of being patient on the next rate hike move, added to dovish FOMC minutes and kept the USD bulls on the defensive.

This coupled with the ongoing bullish run in crude oil prices provided an additional boost to the dollar-denominated currency - Loonie and further collaborated to the pair's weaker tone on the last trading day of the week.

It would now be interesting to see if the pair continues defending the 100-DMA support or extends its recent sharp retracement slide from over 19-month tops, setting the stage for the lowest weekly close since mid-November.

Moving ahead, today's US economic docket, highlighting the release of consumer inflation figures, will now be looked upon for some fresh/meaningful trading impetus during the early North-American session.

Technical levels to watch

On a sustained break through the mentioned support, currently near the 1.3170 region, the pair is likely to accelerate the fall further towards 1.3130 intermediate support en-route the 1.3100 round figure mark.

On the flip side, any meaningful recovery attempt might now confront some fresh supply near the 1.3230-35 region, above which a bout of short-covering might assist the pair to aim towards reclaiming the 1.3300 handle.

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 climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.