USD/CAD trims gains, back near 1.2720

Upside lost momentum near 1.2760.
US-CA yield spreads continue to rule sentiment.
US producer prices, Fedspeak next on tap.

Pablo Piovano FXStreet

The greenback has given away its initial gains vs. its Canadian counterpart on Tuesday, prompting USD/CAD to retreat from daily highs near 1.2760 to the current area around 1.2725/20.

USD/CAD focused on Fedspeak, US data

The pair met some selling pressure around daily highs today and is now struggling for direction in the 1.2720 area, looking to extend the up move seen at the beginning of the week.

In the meantime, US-CA yield spreads differentials continue to drive the sentiment around the pair, with both 10-year benchmarks hovering over monthly peaks around 2.40%/41% and 1.97%/98%, respectively.

Looking ahead, St. Louis Fed J.Bullard (2019 voter, centrist) and Atlanta Fed R.Bostic (2018 voter, centrist) are due to speak later in the NA session, along with October producer prices. In Canada, the most relevant event will be Friday’s inflation figures for the month of October.

USD/CAD significant levels

As of writing the pair is down 0.09% at 1.2721 facing the initial support at 1.2664 (low Nov.10) seconded by 1.2584 (100-day sma) and then 1.2469 (23.6% Fibo of the 2017 drop). On the other hand, a break above 1.2821 (high Nov.7) would open the door to 1.2918 (high Oct.27) and finally 1.2927 (50% Fibo of the 2017 drop).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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.