USD/CAD treads waters above 1.3550 to retrace recent losses, US CPI eyed


  • USD/CAD trades higher after a losing streak ahead of the US data releases.
  • Higher Crude price is contributing support for the Canadian Dollar (CAD).
  • US inflation is expected to be improved; underpinning the US Dollar (USD).

USD/CAD trades higher around 1.3560 during the European session on Wednesday, attempting to halt a three-day losing streak. The rebound in US Dollar (USD) helps the pair to register gains.

Western Texas Intermediate (WTI), Crude oil price continues to gain ground, trading higher around $88.70 per barrel at the time of writing. The black gold is holding firm near a 10-month high and continuing to receive strong support due to concerns about tightening global supplies.

This tightening supply situation is compounded by deeper supply cuts announced by Saudi Arabia and Russia, the world's two largest oil producers, for the remainder of 2023, which continues to bolster oil prices.

The bullish oil prices are providing strong support to the commodity-linked Canadian Dollar (CAD). Additionally, the recent subdued performance of the US Dollar (USD) acted as a headwind for the USD/CAD pair. These factors collectively contribute to the strength of the Loonie pair.

US Dollar Index (DXY) retraces the losing streak, which assesses the performance of the US Dollar (USD) against a basket of the other major six currencies. Spot price beats higher at around 104.80 due to the improved US treasury yields, coupled with market caution ahead of the inflation data releases from the United States (US).

US Consumer Price Index (CPI) is expected to improve by 0.5% on a monthly basis from the previous reading of a 0.2% rise. Moreover, the Core CPI figure is anticipated to remain steady at 0.2%. The rise in inflation could reinforce the prevailing hawkish sentiment surrounding the US Federal Reserve (Fed).

The inflation figures have the potential to offer a more precise understanding of inflation trends within the US economy, and they can wield considerable influence over market sentiment and trading choices concerning the USD/CAD pair.

The market expects that the Fed will further tighten monetary policy by attempting another 25 basis points hike through the end of the year 2023. Additionally, the Greenback bulls are cheering the likelihood of interest rates to remain higher for an extended period.

USD/CAD: additional important levels

Overview
Today last price 1.356
Today Daily Change 0.0006
Today Daily Change % 0.04
Today daily open 1.3554
 
Trends
Daily SMA20 1.3577
Daily SMA50 1.3401
Daily SMA100 1.3405
Daily SMA200 1.3467
 
Levels
Previous Daily High 1.3593
Previous Daily Low 1.3544
Previous Weekly High 1.3694
Previous Weekly Low 1.3576
Previous Monthly High 1.364
Previous Monthly Low 1.3184
Daily Fibonacci 38.2% 1.3563
Daily Fibonacci 61.8% 1.3574
Daily Pivot Point S1 1.3534
Daily Pivot Point S2 1.3514
Daily Pivot Point S3 1.3484
Daily Pivot Point R1 1.3583
Daily Pivot Point R2 1.3613
Daily Pivot Point R3 1.3633

 

 

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