USD/CAD trades in red near 1.3270 ahead of US data

Crude oil recovery loses steam, WTI trades around $51.
US Dollar Index consolidates weekly gains near 98.30.
Coming up on Friday: Jobs data from US and Canada.

Eren Sengezer FXStreet

The USD/CAD pair tested the 1.33 handle more than a few times since the start of the week but failed to make a daily close above that level. With the trading action turning subdued ahead of Friday's key macroeconomic data releases, the pair is posting small daily losses near the 1.3270 handle.

After closing the day 3.5% higher on Wednesday, the barrel of West Texas Intermediate (WTI) extended its recovery and rose above $52 before losing its traction.

According to the latest headlines, which seem to be weighing on crude oil prices, the OPEC+ Joint Technical Committee (JTC) will recommend an output cut of 600,000 barrels per day following its three-day meeting. At the moment, the WTI is down 0.3% on the day at $51, making it difficult for the commodity-sensitive loonie to stay resilient against the USD.

Eyes on employment data

In the second half of the day, Nonfarm Productivity and Unit Labor Costs from the US will be looked upon for fresh impetus. Ahead of these data, the US Dollar Index is registering small daily gains near the 98.30 mark. More importantly, investors will be paying close attention to the US Nonfarm Payrolls (NFP) report and the Canadian Unemployment data on Friday.

“The Canadian labour market is expected to begin 2020 on a subdued note, with employment forecast to rise by 10k in January on the heels of a (downwardly revised) 27k increase for December," said TD Securities analysts previewing the Canadian data. "Even though the Bank's Business Outlook Survey showed solid hiring intentions in Q4, the balance of opinion for small businesses has started to deteriorate."

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3272
Today Daily Change	-0.0019
Today Daily Change %	-0.14
Today daily open	1.3291

Trends
Daily SMA20	1.314
Daily SMA50	1.314
Daily SMA100	1.3179
Daily SMA200	1.3226

Levels
Previous Daily High	1.3304
Previous Daily Low	1.3263
Previous Weekly High	1.3255
Previous Weekly Low	1.3148
Previous Monthly High	1.3255
Previous Monthly Low	1.29
Daily Fibonacci 38.2%	1.3288
Daily Fibonacci 61.8%	1.3279
Daily Pivot Point S1	1.3268
Daily Pivot Point S2	1.3245
Daily Pivot Point S3	1.3227
Daily Pivot Point R1	1.3309
Daily Pivot Point R2	1.3327
Daily Pivot Point R3	1.335

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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.