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

 

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

GBP/USD holds losses near 1.3400 ahead of BoE’s policy decision

GBP/USD holds losses near 1.3400 ahead of BoE’s policy decision

GBP/USD remains subdued for the third consecutive session, trading around 1.3410 during the Asian hours on Thursday. The pair faces challenges as the US Dollar gains ground amid increased safe-haven demand, driven by escalating tensions between Israel and Iran. 

EUR/USD extends downside to near 1.1450 ahead of ECB’s Lagarde speech

EUR/USD extends downside to near 1.1450 ahead of ECB’s Lagarde speech

The EUR/USD pair extends the decline to near 1.1465 during the Asian session on Thursday. The Euro weakens against the Greenback amid the risk-off mood due to rising geopolitical tensions in the Middle East. Traders await the speeches from the European Central Bank policymakers later on Thursday for fresh impetus.

Gold price struggles to build on modest intraday gains amid mixed fundamental cues

Gold price struggles to build on modest intraday gains amid mixed fundamental cues

Gold price edges higher during the Asian session, though it lacks follow-through buying. Trade uncertainties and rising geopolitical risks underpin the safe-haven precious metal. The Fed’s hawkish pause lifts the USD to over a one-week high and caps the XAU/USD.

Ethereum stays muted as uncertainty from Middle East crisis weighs on market sentiment

Ethereum stays muted as uncertainty from Middle East crisis weighs on market sentiment

Ethereum is experiencing calmness in its on-chain metrics following an extended period of price consolidation that has spanned the past six days after dropping from above $2,700.

In the Eurozone, inflation is also a monetary phenomenon

In the Eurozone, inflation is also a monetary phenomenon

Monetary aggregates continue to be closely monitored by the European Central Bank (ECB), a sign that, despite the passage of time and the increasing complexity of financing circuits, quantitative theory remains relevant. 

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025