USD/CAD struggles to find direction near 1.2650 as focus shifts to US data

  • USD/CAD is moving sideways around mid-1.2600s on Tuesday.
  • US Dollar Index holds above 92.50 ahead of inflation data.
  • WTI stays in a consolidation phase after climbing to new multi-week highs.

The USD/CAD pair closed the first day of the week in the negative territory as rising crude oil prices provided a boost to the commodity-sensitive CAD. With investors remaining on the sidelines ahead of key inflation data from the US, the pair seems to have gone into a consolidation phase and was last seen trading flat at 12650.

WTI loses bullish momentum on Tuesday

Supported by the OPEC report that showed the global oil demand was forecast to exceed pre-pandemic levels in 2022, the barrel of West Texas Intermediate (WTI) rose more than 1% on Monday. Although the WTI extended its rally to a fresh six-week high of $71.12 on Tuesday, it seems to have gone into a consolidation phase. As of writing, the WTI was clinging to small daily gains at $70.75, limiting USD/CAD's downside.

On the other hand, the US Dollar Index, which lost its traction amid falling US Treasury bond yields on Monday, is virtually unchanged on the day at 92.60.

The US Bureau of Labor Statistics will release the August Consumer Price Index (CPI) data at 1230 GMT. Investors expect the annual CPI to edge lower to 5.3% from 5.4% in July while seeing the Core CPI inching lower to 4.2% from 4.3%. Stronger-than-expected CPU figures are likely to provide a boost to the greenback and vice versa. 

July Manufacturing Sales data will be featured in the Canadian economic docket, which is unlikely to trigger a significant market reaction.

Technical levels to watch for


Today last price 1.2649
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 1.2649
Daily SMA20 1.2644
Daily SMA50 1.2581
Daily SMA100 1.239
Daily SMA200 1.2526
Previous Daily High 1.2695
Previous Daily Low 1.2638
Previous Weekly High 1.2762
Previous Weekly Low 1.2518
Previous Monthly High 1.2949
Previous Monthly Low 1.2453
Daily Fibonacci 38.2% 1.266
Daily Fibonacci 61.8% 1.2674
Daily Pivot Point S1 1.2626
Daily Pivot Point S2 1.2603
Daily Pivot Point S3 1.2569
Daily Pivot Point R1 1.2683
Daily Pivot Point R2 1.2718
Daily Pivot Point R3 1.2741



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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 


GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 


XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more