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

 

 

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