- USD/CAD regained its traction after dropping to 1.2500 area.
- US Dollar Index climbs above 92.50 ahead of US data releases.
- Falling crude oil prices continue to weigh on CAD.
The USD/CAD pair closed virtually unchanged on Wednesday and edged higher during the Asian trading hours on Thursday. However, the pair lost its traction and dropped to 1.2500 area in the European session. Nevertheless, with the greenback starting to gather strength, USD/CAD managed to reverse its direction and was last seen rising 0.22% on the day at 1.2534.
CAD remains on the back foot as oil continues to push lower
Despite the broad-based USD weakness, the Bank of Canada's (BoC) cautious tone with regards to policy outlook made it difficult for the CAD to outperform its American counterpart. Moreover, falling crude oil prices put additional weight on the loonie's shoulders. The barrel of West Texas Intermediate lost more than 3% on Wednesday and was last seen trading at $71.75, down 1.55% on a daily basis.
On the other hand, the US Dollar Index turned north ahead of the American session as the negative impact of FOMC Chairman Jerome Powell's dovish remarks seems to have remained short-lived. At the moment, the US Dollar Index is rising 0.17% at 92.52.
Later in the session, the Federal Reserve Bank of New York's Empire State Manufacturing Index, the weekly Initial Jobless Claims and June Industrial Production data from the US will be looked upon for fresh impetus. FOMC Chairman Powell will respond to questions on the second day of his testimony but he is unlikely to deliver any fresh insights into the policy outlook.
The ADP Employment Change for June will be featured in the Canadian economic docket.
Technical levels to watch for
|Today last price||1.2534|
|Today Daily Change||0.0027|
|Today Daily Change %||0.22|
|Today daily open||1.2507|
|Previous Daily High||1.2526|
|Previous Daily Low||1.2427|
|Previous Weekly High||1.259|
|Previous Weekly Low||1.2303|
|Previous Monthly High||1.2487|
|Previous Monthly Low||1.2007|
|Daily Fibonacci 38.2%||1.2465|
|Daily Fibonacci 61.8%||1.2488|
|Daily Pivot Point S1||1.2447|
|Daily Pivot Point S2||1.2387|
|Daily Pivot Point S3||1.2347|
|Daily Pivot Point R1||1.2547|
|Daily Pivot Point R2||1.2587|
|Daily Pivot Point R3||1.2647|
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD drops toward 1.0700 after US jobs report
EUR/USD came under renewed bearish pressure in the second half of the day on Friday and declined toward 1.0700. Stronger-than-expected Nonfarm Payrolls (NFP) data helps the US Dollar gather strength ahead of the weekend and forces the pair to stay on the back foot.
GBP/USD extends slide below 1.2450 amid a stronger USD
GBP/USD dropped further and hit fresh daily lows below 1.2450 amid a stronger US dollar. The Greenback remains firm following the release of the US May jobs report. Despite losing almost 100 pips on Friday, GBP/USD is still on track for a weekly gain.
Gold falls below $1,960 as US yields rebound after US jobs data
Gold price turned south and declined below $1,960 on Friday. After the data from the US revealed that Nonfarm Payrolls rose 339,000 in May, the benchmark 10-year US Treasury bond yield gained more than 2% and recovered toward 3.7%, weighing heavily on XAU/USD.
China crypto community picks Ethereum, Arbitrum and BNB Chain as top protocols
Ethereum, Arbitrum and BNB Chain protocols are top picks for the Chinese crypto community, data from a report shows, a possible bullish catalyst for tokens related to these protocols as Hong Kong opens the door of crypto to retail investors.
LULU stock adds 15% on big Wall Street beat
Lululemon Athletica did it again. In something that has become quite predictable, LULU stock sailed 14.9% higher in Friday’s premarket to $377.20 after the prized athleisure brand posted a nearly 15% earnings beat for the first quarter.