USD/CAD struggles to move back above 1.3300 mark, US CPI in focus

  • The ongoing slump in Oil prices undermine Loonie and lend some support.
  • The USD remains on the defensive amid firming Fed rate cut expectations.
  • Traders now eye Wednesday’s US consumer inflation data for a fresh impetus.

The USD/CAD pair held on to its mildly positive tone through the early European session on Wednesday, albeit remained capped below the previous session's swing high.

After a rather subdued action through the major part of Tuesday's trading session, the pair witnessed a surprise move to the upside and was being supported by weaker Crude Oil prices. A weaker demand outlook, coupled with an unexpected rise in the US inventories weighed on Oil and undermined demand for the commodity-linked currency - Loonie.

The positive move, however, lacked any strong bullish conviction and failed to sustain above the 1.3300 handle in the wake of the US President Donald Trump's efforts to talk down the domestic currency. Trump said that other currencies are undervalued against the US Dollar and also complained that the Fed was keeping interest rates way too high.

The comments further reaffirmed market expectations for an eventual Fed rate cut action by the end of this year and kept the USD bulls on the defensive, failing to assist the pair to build on the positive momentum despite a follow-through slump in Oil prices on Wednesday. Hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have actually bottomed out in the near-term or positioning for any further appreciating move.

Later during the early North-American session, the US economic docket - highlighting the release of the latest consumer inflation figures, will now be looked upon to grab some meaningful trading opportunities. In the meantime, the USD/Oil price dynamics might continue to act as key determinants of the pair's momentum on Wednesday.

Technical levels to watch


Today last price 1.3286
Today Daily Change 0.0002
Today Daily Change % 0.02
Today daily open 1.3284
Daily SMA20 1.3422
Daily SMA50 1.3413
Daily SMA100 1.3348
Daily SMA200 1.3278
Previous Daily High 1.3309
Previous Daily Low 1.325
Previous Weekly High 1.3529
Previous Weekly Low 1.3262
Previous Monthly High 1.3566
Previous Monthly Low 1.3357
Daily Fibonacci 38.2% 1.3287
Daily Fibonacci 61.8% 1.3273
Daily Pivot Point S1 1.3253
Daily Pivot Point S2 1.3222
Daily Pivot Point S3 1.3195
Daily Pivot Point R1 1.3312
Daily Pivot Point R2 1.334
Daily Pivot Point R3 1.3371



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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: traders set to position ahead of Fed

The EUR/USD pair moderated its advance on Friday, compliments to stronger-than-expected US data, finishing the week anyway with gains around 1.1070. Better-than-expected US data released Friday brought relief to USD bulls.


GBP/USD: Brexit optimism keeps bulls in the drivers’ seat

The GBP/USD pair has advanced for a second consecutive week, reaching Friday 1.2505, its highest since last July, and settling not far below this last. Fading odds for a hard-Brexit continue to underpin the Pound.


USD/JPY: further gains depending on risk-related sentiment

The USD/JPY pair settled above the 108.00 level for the first time since late July, closing substantially higher for a third consecutive week.  Demand for the safe-haven yen continued to be undermined.


Gold: Down for third straight week, on the defensive ahead of the Fed

Gold is set to end lower for the third straight week and will likely remain on the defensive in the run-up to Wednesday's Federal Open Market Committee (FOMC) meeting. A dovish surprise will likely put a strong bid under the yellow metal.

Gold News

The good, the bad and the extremely ugly crypto

XRP is in a borderline situation and with little room for doubt. Bitcoin demonstrates its power and positions itself as the emerging leader. Ethereum is in an intermediate situation, far from risk but also from opportunity.

Read more