USD/CAD trades with modest losses, holds above mid-1.2600s

  • A modest USD pullback prompted some selling around USD/CAD on Friday.
  • Hawkish Fed expectations might help limit any meaningful slide for the USD.
  • Weaker oil prices could undermine the loonie and lend support to the major.

The USD/CAD pair edged lower heading into the European session and was last seen trading near daily lows, around the 1.2655-60 region.

The pair witnessed some selling during the first half of the trading action on Friday and eroded a part of the previous day's positive move amid a modest US dollar downtick. As investors digested Thursday's upbeat US economic releases, the underlying bullish sentiment in the financial markets undermined the safe-haven USD and exerted some pressure on the USD/CAD pair.

That said, expectations for an early policy tightening by the Fed should continue to act as a tailwind for the greenback and help limit any meaningful slide for the USD/CAD pair. Investors started pricing in the possibility of an imminent Fed taper announcement after the US Retail Sales data underscored consumer confidence and pointed to the continuation of economic recovery.

Apart from this, a softer tone around crude oil prices could undermine the commodity-linked loonie and lend some support to the USD/CAD pair. Even from a technical perspective, the pair has been oscillating in a range over the past one week or so. This, in turn, warrants some caution for aggressive bearish traders and before positioning for any further depreciating move.

Market participants now look forward to the release of the Prelim Michigan US Consumer Sentiment Index, due later during the early North American session. This, along with the broader market risk sentiment and the US bond yields, might influence the USD. Traders will further take cues from oil price dynamics to grab some short-term opportunities around the USD/CAD pair.

Technical levels to watch


Today last price 1.2662
Today Daily Change -0.0019
Today Daily Change % -0.15
Today daily open 1.2681
Daily SMA20 1.2639
Daily SMA50 1.2592
Daily SMA100 1.24
Daily SMA200 1.2524
Previous Daily High 1.27
Previous Daily Low 1.2617
Previous Weekly High 1.2762
Previous Weekly Low 1.2518
Previous Monthly High 1.2949
Previous Monthly Low 1.2453
Daily Fibonacci 38.2% 1.2668
Daily Fibonacci 61.8% 1.2648
Daily Pivot Point S1 1.2632
Daily Pivot Point S2 1.2583
Daily Pivot Point S3 1.2549
Daily Pivot Point R1 1.2715
Daily Pivot Point R2 1.2749
Daily Pivot Point R3 1.2798



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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stays afloat above 1.1600 as inflation data meet expectations

EUR/USD came under modest bearish pressure in the early European session and continues to have a difficult time regaining its traction. After the data from the euro area revealed that annual CPI stayed unchanged at 3.4% in September, the pair stays relatively calm above 1.1600.


GBP/USD drops below 1.3800 as UK CPIs disappoint

GBP/USD eases below 1.3800, as an unexpected decline in the UK inflation douses the BOE rate hike expectations. Covid resurgence in the UK also undermines the pound. The pair could find support from a broadly subdued US dollar and fresh Brexit optimism. 


Gold: $1791 appears a tough nut to crack for XAU/USD bulls

Gold price is holding the higher ground, extending the previous advance amid a pullback in the US 10-year Treasury yields from five-month highs of 1.672%.

Gold News

Crypto markets prepare for final pullback before next leg up

Bitcoin price is due for a retracement as MRI flashes a sell signal on the daily chart. Ethereum price continues to consolidate under the $3,938 resistance level. Ripple price slides below the $1.09 support level as the crypto markets prepare for a minor correction.

Read more

Tesla: Why it is time to sell TSLA stock

Tesla breaks higher again on Monday as we had called. TSLA to release earnings after the close on Wednesday. Is it time to sell Tesla stock now before earnings?

Read more