USDCAD finds cushion around 1.3250 amid tailwinds of fading risk-on mood and subdued oil


  • USDCAD has sensed buying interest around 1.3250 as DXY rebounds ahead of US midterm elections outcome.
  • The change of the House of Representatives' stewardship to Republicans will dampen expansionary policies.
  • Loonie investors are eyeing the release of the inflation figures.

The USDCAD pair is displaying a rangebound structure after gauging the cushion around 1.3250 in the Tokyo session. The risk-on impulse has started fading led by rising volatility ahead of the outcome of the US midterm elections and the extended weekend due to the Veterans Day holiday last Friday. The risk-sensitive currencies are facing a loss in the upside momentum.

Anxiety ahead of the US midterm elections has weighed on S&P500 futures. The changing hands of stewardship for the House of Representatives will impact the expansionary policies as additional approval from Republicans will stretch the time for policy execution. Investors have turned anxious as the occurrence could trim economic projections ahead in already vulnerable times when the US economy is subject to recession due to accelerating interest rates.

The US dollar index (DXY) has extended its pullback move to near 107.00 despite the fact that the Federal Reserve (Fed) won’t go for hefty rate hikes as red-hot inflation has cooled down. Also, the long-term US Treasury yields have rebounded to near 3.90%.

Meanwhile, Loonie investors are awaiting Wednesday’s inflation numbers for further guidance. The headline Consumer Price Index (CPI) is seen marginally higher at 7.0% vs. the prior release of 6.9%. While the core CPI that excludes oil and food prices is seen at 6.3%, higher than the prior release of 6.0%.

On the oil front, oil prices have dropped after facing barricades of around $89.00 despite easing Covid-19 restrictions in China. It seems that oil bulls need some solid reasoning for extending its recent rally further.

USD/CAD

Overview
Today last price 1.3276
Today Daily Change 0.0015
Today Daily Change % 0.11
Today daily open 1.3261
 
Trends
Daily SMA20 1.3595
Daily SMA50 1.3525
Daily SMA100 1.3229
Daily SMA200 1.2979
 
Levels
Previous Daily High 1.3361
Previous Daily Low 1.3236
Previous Weekly High 1.3571
Previous Weekly Low 1.3236
Previous Monthly High 1.3978
Previous Monthly Low 1.3496
Daily Fibonacci 38.2% 1.3284
Daily Fibonacci 61.8% 1.3313
Daily Pivot Point S1 1.3211
Daily Pivot Point S2 1.3161
Daily Pivot Point S3 1.3086
Daily Pivot Point R1 1.3336
Daily Pivot Point R2 1.3411
Daily Pivot Point R3 1.3461

 

 

 

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