USD/CAD edges lower to near 1.3380 as Crude prices rise, US, UK attacks on Houthis


  • USD/CAD retraces its recent gains as Crude prices continue to gain ground.
  • WTI price moves upward over escalated concern of Middle-East conflict.
  • US and UK military forces conducted air strikes on Iran-led Houthi targets in Yemen.
  • The risk-on mood weakens the US Dollar despite upbeat US CPI data and improved US yields.

USD/CAD retraces its recent gains registered in the previous session, edging lower to near 1.3380 during the Asian session on Friday. The Canadian Dollar (CAD) has strengthened in response to the increase in crude oil prices, which can be linked to the heightened tensions in the Middle East.

The military forces of the United States (US) and United Kingdom (UK), supported by Australia, Bahrain, Canada, and the Netherlands, conducted air strikes on Houthi targets in Yemen led by Iran. This action was taken in an effort to safeguard maritime vessels in the Red Sea. West Texas Intermediate (WTI) price trades near $73.40 per barrel at the time of writing.

In the absence of Economic data from Canada for the entire week, traders waiting for next week’s Canada Consumer Price Index data for December and Retail Sales figures for November on Tuesday and Friday, respectively.

The US Dollar (USD) faces challenges on improved risk appetite as traders move away from the Greenback, which could be attributed to the speculation of Federal Reserve’s (Fed) rate cuts in March and May. The US Dollar Index (DXY) trades slightly lower around 102.20 despite improved US Treasury yields.

On Thursday, the positive US inflation data provided support for the US Dollar, enabling it to gain some upward traction. The US Consumer Price Index (CPI) recorded a 3.4% year-on-year increase in December, surpassing both November's 3.1% and the expected market figure of 3.2%. Additionally, the monthly CPI growth for December exhibited a 0.3% increase, surpassing the market projection of 0.2%. However, the annual Core CPI slightly eased to 3.9% from the previous reading of 4.0%, while the monthly figure remained stable at 0.3%, aligning with expectations.

Traders await the release of the US Producer Price Index (PPI) data for December, along with the speech by Federal Reserve member Neel Kashkari later in the North American session, seeking additional insights into the economic landscape of the United States.

USD/CAD: additional important levels

Overview
Today last price 1.3382
Today Daily Change -0.0016
Today Daily Change % -0.12
Today daily open 1.3398
 
Trends
Daily SMA20 1.3318
Daily SMA50 1.3516
Daily SMA100 1.3572
Daily SMA200 1.348
 
Levels
Previous Daily High 1.3443
Previous Daily Low 1.3351
Previous Weekly High 1.3399
Previous Weekly Low 1.3229
Previous Monthly High 1.362
Previous Monthly Low 1.3178
Daily Fibonacci 38.2% 1.3408
Daily Fibonacci 61.8% 1.3386
Daily Pivot Point S1 1.3352
Daily Pivot Point S2 1.3305
Daily Pivot Point S3 1.3259
Daily Pivot Point R1 1.3444
Daily Pivot Point R2 1.349
Daily Pivot Point R3 1.3536

 

 

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

EUR/USD tumbles to 2024 lows near 1.0460

EUR/USD tumbles to 2024 lows near 1.0460

The US Dollar gathers extra pace and weigh on the risk complex, sending EUR/USD to new YTD lows near the 1.0460 region as the NA draws to a close on Thursday.

EUR/USD News
GBP/USD dips to multi-month lows around 1.2570

GBP/USD dips to multi-month lows around 1.2570

Further losses now motivate GBP/USD to revisit the vicinty of the 1.2570 zone for the first time since early May, always on the back of the strong move higher in the Greenback.

GBP/USD News
Gold faces extra upside near term

Gold faces extra upside near term

Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. Markets await comments from Fed policymakers.

Gold News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

Read more
A new horizon: The economic outlook in a new leadership and policy era

A new horizon: The economic outlook in a new leadership and policy era

The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures