USD/CAD trades with modest losses, below 1.3400 mark ahead of US/Canadian jobs report


  • USD/CAD comes under some fresh selling on Friday amid persistent USD weakness.
  • Collapsing US bond yields, Fed rate cut speculations continue to weigh on the USD.
  • Weaker oil prices undermined the loonie and helped limit losses ahead of jobs data.

The USD/CAD pair refreshed daily lows, around the 1.3385 region during the early European session and has now erased the previous session's positive move.

The pair extended the overnight late pullback from the 1.3440 supply zone, or weekly tops, and witnessed some follow-through selling on the last trading day of the week. Persistent US dollar weakness, amid a plunge in the US Treasury bond yields, was seen as one of the key factors exerting some pressure on the major.

Investors likely to wait for a fresh catalyst

The coronavirus-led selloff across global equity markets forced investors to take refuge in the so-called "safe-haven" assets, including the US Treasuries. This coupled with expectations that the Fed will again cut interest rates by another 50 bps on March 18 dragged the US bond yields to fresh record lows on Friday.

Meanwhile, reports that OPEC ministers have decided to cut oil output by 1.5 million barrels per day failed to lift oil prices, which lost around 1.5% on Friday. Weaker sentiment around the oil market undermined the commodity-linked currency – the loonie – and might help limit deeper losses, at least for the time being.

Investors might also be reluctant to place any aggressive bets, rather prefer to wait on the sidelines ahead of Friday's important release of the monthly employment reports from the US (NFP) and Canada. This coupled with the outcome of the OPEC+ meeting will play a key role in determining the pair's next near-term direction.

Technical levels to watch

USD/CAD

Overview
Today last price 1.339
Today Daily Change -0.0030
Today Daily Change % -0.22
Today daily open 1.342
 
Trends
Daily SMA20 1.3305
Daily SMA50 1.3186
Daily SMA100 1.3188
Daily SMA200 1.3209
 
Levels
Previous Daily High 1.3438
Previous Daily Low 1.3383
Previous Weekly High 1.3465
Previous Weekly Low 1.3225
Previous Monthly High 1.3465
Previous Monthly Low 1.3202
Daily Fibonacci 38.2% 1.3417
Daily Fibonacci 61.8% 1.3404
Daily Pivot Point S1 1.3389
Daily Pivot Point S2 1.3358
Daily Pivot Point S3 1.3334
Daily Pivot Point R1 1.3445
Daily Pivot Point R2 1.3469
Daily Pivot Point R3 1.35

 

 

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