USD/CAD tackles to hold above 1.3740 ahead of Tuesday’s US inflation data

USD/CAD opens the day at 1.3724 and trades at 1.3738, up by 0.10%.
The intraday price movements are relatively narrow at 1.3751-1.3706.
Market sentiment remains cautious due to the SVG collapse.
Investors await fresh impetus from the US CPI and Retail Sales data.

Daily price movements:

USD/CAD trades at 1.3738, slightly below 1,3740 at the press time, with the intraday price range being 1.3751 to 1.3706. The market sentiment remains cautious as investors await fresh impetus from Tuesday's upcoming US Inflation data at 12:30 GMT. The USD/CAD currency pair's price movements have been relatively narrow, struggling to gain momentum.

Investors' willingness to take risks is low due to the impact of the collapse of the Silicon Valley Bank (SVG) on global stocks. Meanwhile, the yield on 10-year US Treasury bonds has risen to approximately 3.57% as investors anticipate that US inflation data will increase the demand for safe-haven investments.

The Bank of Canada (BoC) has stated that the current monetary policy adequately controls inflation in Canada. BoC Governor Tiff Macklem has decided to maintain the current monetary policy in March to assess its effectiveness.

Nonetheless, unexpected growth in employment figures and an increase in the employment cost index imply that inflation could rise again. Along with maintaining the current monetary policy, BoC Governor Tiff Macklem has indicated the possibility of raising interest rates if inflation unexpectedly rises.

Key economic events:

US February Consumer Price Index (CPI) scheduled for Tuesday at 12:30 GMT and US February Retail Sales on Wednesday at 12:30 GMT are critical data to be closely monitored.

Nonetheless, due to the unfortunate collapse of Silicon Valley Bank (SVB), the markets are now expecting a more accommodating approach from the Federal Reserve (Fed).

Technical view:

According to the daily chart, USD/CAD trades above its daily 20-SMA of 1.3596, indicating a short-term bullish trend. RSI(14) is at 62.250 at the time of press, indicating a buying stance.

The daily pivot point is 1.3745, with daily resistance levels at 1.3814, 1.3896, and 1.3964 and daily support levels at 1.3663, 1.3594, and 1.3512.

USD/CAD

Overview
Today last price	1.3734
Today Daily Change	0.0003
Today Daily Change %	0.02
Today daily open	1.3731

Trends
Daily SMA20	1.3596
Daily SMA50	1.3483
Daily SMA100	1.3504
Daily SMA200	1.3319

Levels
Previous Daily High	1.3828
Previous Daily Low	1.3677
Previous Weekly High	1.3862
Previous Weekly Low	1.3582
Previous Monthly High	1.3666
Previous Monthly Low	1.3262
Daily Fibonacci 38.2%	1.3735
Daily Fibonacci 61.8%	1.377
Daily Pivot Point S1	1.3663
Daily Pivot Point S2	1.3594
Daily Pivot Point S3	1.3512
Daily Pivot Point R1	1.3814
Daily Pivot Point R2	1.3896
Daily Pivot Point R3	1.3964

GBP/USD remains offered below 1.3600

GBP/USD resumes its decline, reversing Tuesday’s bullish attempt and breaking below 1.3600 the figure on Wednesday. Cable’s marked pullback follows a firm advance in the Greenback as investors continue to assess latest US data as well as the geopolitical landscape.

EUR/USD remains on the back foot around 1.1650

EUR/USD comes under renewed selling interest, slipping back to the mid-1.1600s ahead of the opening bell in Asia. Spot loses momentum on the back of solid gains in the US Dollar in a context of unabated geopolitical tensions and steady caution ahead of key US data releases and Chair Warsh’s speech at the Jackson Hole Symposium on Friday. Looking ahead, the ECB will publish its Accounts on Thursday.

Gold recovers from weekly low; trades above $4,600 on softer USD

Gold attracts some dip-buyers during the Asian session on Thursday, recovering part of the previous day's losses to the weekly low as the US dollar lacks follow-through amid Hormuz optimism and sliding US bond yields. Meanwhile, hot US PCE inflation data keeps Fed rate-hike bets on the table, acting as a tailwind for the buck and capping non-yielding bullion.

Bessent’s bond moves and dollar weaponization strengthen Bitcoin's case

US Treasury Secretary Scott Bessent’s recent actions have strengthened two of the strongest arguments for Bitcoin (BTC), according to Bitwise CIO Matt Hougan. In a late Tuesday note to investors, Hougan highlighted Bessent’s comments on CNBC and the US government’s increasing use of the dollar-based financial system as key developments that could support BTC’s long-term appeal.

60 days to pay: Nvidia is financing its own demand

The Jensen Huang-helmed Nvidia (NVDA) delivered its second-quarter earnings print with its stock roughly 11% beneath the peak it set in May and around 8% beneath where it traded in mid-August, on the day it told the market it would stand behind up to $105 billion of a single customer's rent. Then it beat everything. Revenue of $96.221 billion against a consensus near $92 billion.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.