USD/CAD tumbles to lows near 1.3250 on crude gains

  • The pair moves lower to 2-day lows near 1.3250.
  • WTI gains sustaining the down move in spot.
  • Fed’s Powell, API report next on the calendar.

The greenback is retreating from recent tops vs. the risk-complex and is motivating USD/CAD to ease further ground to the mid-1.3200s, or daily lows.

USD/CAD looks to trade, oil

Spot has receded to new 2-day lows in the 1.3250 region on the back of the renewed sentiment surrounding the riskier assets along with the rebound in crude oil prices.

In fact, CAD is appreciating further in tandem with today’s recovery in prices of the barrel of West Texas Intermediate to levels above the $53.00 mark, extending the move to 3-day peaks.

Further positive news in the risk-associated space comes from hopes of a potential agreement between China and the US in light of this week’s trade talks. According to market chatter, an extension of the current 90-day truce deadline could be announced later in the week.

In the data space, Chief Powell is due to speak later in the day, although mentions to monetary policy appear unlikely. Earlier, the NFIB index came in below expectations at 101.2 for the month of January. Later in the NA session, the API will report on US crude oil stockpiles.

What to look for in CAD

CAD keeps looking to the broad risk-appetite trends and crude oil dynamics as the main drivers of the price action in the near term, as speculations of further tightening by the Bank of Canada appear somewhat mitigated. Furthermore, the Canadian Dollar should remain vigilant on headlines from the US-China trade talks starting this week in Beijing.

USD/CAD significant levels

As of writing the pair is retreating 0.37% at 1.3250 and a breach of 1.3242 (21-day SMA) would aim for 1.3223 (50% Fibo of the October-December up move) and then 1.3195 (10-day SMA). On the other hand, the next up barrier emerges at 1.3329 (high Feb.8) followed by 1.3334 (55-day SMA) and finally 1.3375 (high Jan.24).

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Weakest daily close since June 2017, focus on US durable goods

EUR/USD looks south toward 1.10, having bolstered the already bearish technical setup with a close below 1.1176 yesterday. The pair took a beating yesterday, courtesy of the broad-based US dollar demand. 

EUR/USD News

GBP/USD regains 1.2900 handle on Brexit headlines

The GBP/USD pair regains its stand above 1.2900 while heading into the London open on Thursday. Absence of immediate challenge to PM May’s position and a likely Brexit deal voting helps the GBP.

GBP/USD News

USD/JPY keeps range around 112.00 post-BOJ

USD/JPY has barely moved in response to BOJ’s decision to keep key policy tools unchanged. The downward revision of the growth and inflation forecasts could push the JPY lower during the day ahead. 

USD/JPY News

US Durable Goods Preview: Where the consumer leads

Durable goods orders are expected to rise 0.8% in March having fallen 1.6% in February. Orders excluding the transportation sector are predicted to gain 0.2%.

Read more

Gold: Immediate rising support-line favors gradual recovery to $1280

Gold is taking the rounds near $1276 while heading into the European open on Thursday. The yellow metal has been on recovery from Tuesday when it plummeted to the 2019 lows.

Gold News

Majors

Cryptocurrencies

Signatures