USD/CAD faces barricades around 1.3300 amid subdued USD Index, oil jumps


  • USD/CAD has sensed sheer selling pressure around 1.3300 amid strength in the oil price.
  • S&P500 is expected to open on a negative note as investors are cautious ahead of second-quarter corporate earnings.
  • Although Fed has voted for two more interest rate hikes, the investing community is expecting only one rate hike by the year-end.

The USD/CAD pair has faced stiff barricades near the round-level resistance of 1.3300 in the early New York session. The Loonie asset is expected to remain on the tenterhooks as the market mood has turned risk-off ahead of the United States opening after a holiday.

S&P500 is expected to open on a negative note as investors are cautious ahead of second-quarter corporate earnings. Subdued earnings are expected from US firms amid higher interest rates from the Federal Reserve (Fed) and tight credit conditions by commercial banks. US commercial banks tightened their credit-disbursement process to avoid maintaining asset quality in a turbulent environment.

The US Dollar Index (DXY) has dropped after facing selling pressure around 103.20 despite investors shifting their focus to the release of the Federal Open Market Committee (FOMC) minutes. Although Fed chair Jerome Powell has voted for two more interest rate hikes, the investing community is expecting only one rate hike by the year-end.

About USD Index guidance, economists at MUFG expect Even if the FOMC does hike in July, with the market close to fully priced and with most other G10 central banks priced to hike further, the scope for the Dollar to strengthen over the second half of the year remains limited.

Meanwhile, the Canadian Dollar has picked strength amid upbeat oil prices. West Texas Intermediate (WTI), futures on NYMEX, have climbed to near $72.00 as buying interest inspired by the announcement of production cuts by Saudi are outperforming the bleak global outlook.

It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices support the Canadian Dollar.

USD/CAD

Overview
Today last price 1.325
Today Daily Change 0.0027
Today Daily Change % 0.20
Today daily open 1.3223
 
Trends
Daily SMA20 1.3251
Daily SMA50 1.3409
Daily SMA100 1.3493
Daily SMA200 1.3509
 
Levels
Previous Daily High 1.3257
Previous Daily Low 1.3203
Previous Weekly High 1.3285
Previous Weekly Low 1.3117
Previous Monthly High 1.3585
Previous Monthly Low 1.3117
Daily Fibonacci 38.2% 1.3224
Daily Fibonacci 61.8% 1.3236
Daily Pivot Point S1 1.3199
Daily Pivot Point S2 1.3174
Daily Pivot Point S3 1.3145
Daily Pivot Point R1 1.3252
Daily Pivot Point R2 1.3281
Daily Pivot Point R3 1.3306

 

 

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 sits at yearly lows near 1.0550 ahead of EU GDP, US PPI data

EUR/USD sits at yearly lows near 1.0550 ahead of EU GDP, US PPI data

EUR/USD is trading near 1.0550 in the European session on Thursday, sitting at the lowest level in a year. The Trump trades-driven relentless US Dollar buying and German political instability weigh on the pair. Traders await EU GDP data and US PPI report ahead of Fed Chair Powell's speech. 

EUR/USD News
GBP/USD holds losses below 1.2700 on sustained US Dollar strength

GBP/USD holds losses below 1.2700 on sustained US Dollar strength

GBP/USD is holding losses near multi-month lows below 1.2700 in European trading on Thursday. The pair remains vulnerable amid a broadly firmer US Dollar and softer risk tone even as BoE policymakers stick to a cautious stance on policy. Speeches from Powell and Bailey are eyed. 

GBP/USD News
Gold price hits fresh two-month low as the post-election USD rally remains uninterrupted

Gold price hits fresh two-month low as the post-election USD rally remains uninterrupted

Gold price drifts lower for the fifth consecutive day and drops to its lowest level since September 19, around the $2,554-2,553 region heading into the European session on Thursday. The commodity continues to be weighed down by an extension of the US Dollar's post-election rally to a fresh year-to-date.

Gold News
XRP struggles near $0.7440, could still sustain rally after Robinhood listing

XRP struggles near $0.7440, could still sustain rally after Robinhood listing

Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.

Read more
Trump vs CPI

Trump vs CPI

US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis. 

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