USD/CAD ticks higher, but remains below mid-1.3200s post-US data

Haresh Menghani FXStreet

• Upbeat US monthly retail sales remained supportive of the strong USD bid tone.
• Positive oil prices underpinning Loonie and kept a lid on any meaningful up-move.

The USD/CAD pair recovered a major part of its early downtick and now seems headed back towards the top end of its daily trading range post-US macro releases.

The pair quickly reversed an early slide to the 1.3200 neighborhood and caught some bids during the early North-American session following the release of stronger-than-expected US monthly retail sales figures.

Data released on Thursday showed the US monthly retail sales recorded a strong 0.8% m/m growth in October, surpassing consensus estimates pointing to a 0.5% rise. Excluding automobiles- core retail sales also bettered market expectations and increased by 0.7% m/m during the reported month.

"American consumers have affirmed they are still in charge. The rebound in retail sales in October leading into the holiday shopping season is good news for the economy, the Fed and the dollar," Joseph Trevisani, Senior Analyst at FXStreet noted after the report was made public on Thursday.

Meanwhile, a slight disappointment from the Philly Fed Manufacturing Index, falling to 12.9 in Nov. from 22.2 previous, was largely offset by an unexpected rise in the Empire State Manufacturing Index, coming in at 23.3 for the current month as compared to previous month's reading of 21.1.

The US Dollar held on to its strong intraday gains, albeit failed to provide any meaningful bullish impetus. A follow-through uptick in crude oil prices, which tend to underpin demand for the commodity-linked currency - Loonie, turned out to be the only factor keeping a lid on any meaningful up-move, at least for the time being.

Technical levels to watch

The 1.3250-60 region might continue to act as an immediate strong hurdle, above which the pair seems all set to aim towards reclaiming the 1.3300 handle. On the flip side, the 1.3210-05 region now seems to have emerged as an immediate support, which if broken might prompt some aggressive long-unwinding trade and accelerate the fall further towards the 1.3170-65 horizontal support.

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.