• USD/CAD pares some weekly losses amid broad US dollar strength across the board.
  • Risk-on market mood, depicted by US stock indexes, hurts safe-haven currencies, except for the greenback.
  • The Loonie falls, despite rising crude oil prices.

The USD/CAD is advancing during the New York session, up 0.19%, trading at 1.2393 at the time of writing. An upbeat market sentiment surrounds the market portrayed by US equity indexes rising between 0.17% and 0.92%.

Western Texas Intermediate (WTI), the US benchmark for crude oil, which significantly influences the Canadian dollar, is rising 0.61%, trades at $81.42, failing to lift the CAD.

The US Dollar trims some weekly losses, rises above the 94.00 threshold

The US Dollar Index that tracks the greenback’s performance against a basket of rivals advances 0.03%, currently at 94.01, underpinned by the US 10-year benchmark note yield, which rises almost six basis points, sitting at 1.574%

On Friday, the Bank of Canada Governor Tim Macklem warned that the faster pace of price increases may persist longer than expected and may slow the pace of Canada’s economic recovery, as global supply-chain issues weigh on the domestic economy. Further added that bottlenecks, international shipping shortages, and higher oil prices are not easing as quickly as central bankers across the globe expected.

Moving to macroeconomic data, the Canadian docket featured Wholesale Sales for August, which rose by 0.3%, lower than the 0.5% estimated by economists. Regarding the US, September’s Retail Sales unexpectedly increased by 0.7%, better than the 0.2% contraction foreseen by analysts, whereas excluding autos, expanded 0.8% more than the 0.5% expected.

Additionally, the University of Michigan Consumer Sentiment Index came at 71.4, lower than the 72.8 expected by investors, the second-lowest reading since 2011, as consumers grew more worried about current conditions and the economic outlook.

USD/CAD Technical outlook: To plunge to 1.22 sooner than expected – Scotiabank

Economists at Scotiabank expect the USD/CAD pair to plunge to 1.2200 in the following few weeks:

“We continue to forecast 1.22 for year-end but feel the USD/CAD risks hitting that point in the next few weeks before perhaps rebounding somewhat in December.”

“There is little, obvious support for the USD until the low 1.22s (76.4% Fibonacci support at 1.2229), but we can see some potential congestion in the 1.2275/1.2325 range that may slow USD losses.”

“Resistance is 1.2340/45 and 1.25.”

USD/CAD KEY ADDITIONAL LEVELS TO WATCH

 

Overview
Today last price 1.2393
Today Daily Change 0.0023
Today Daily Change % 0.19
Today daily open 1.237
 
Trends
Daily SMA20 1.2622
Daily SMA50 1.2622
Daily SMA100 1.2497
Daily SMA200 1.2509
 
Levels
Previous Daily High 1.2446
Previous Daily Low 1.2355
Previous Weekly High 1.2655
Previous Weekly Low 1.2452
Previous Monthly High 1.2896
Previous Monthly Low 1.2494
Daily Fibonacci 38.2% 1.239
Daily Fibonacci 61.8% 1.2411
Daily Pivot Point S1 1.2335
Daily Pivot Point S2 1.2299
Daily Pivot Point S3 1.2244
Daily Pivot Point R1 1.2426
Daily Pivot Point R2 1.2481
Daily Pivot Point R3 1.2517

 

 

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