USD/CAD gains ground below the mid-1.3200s on a modest US Dollar recovery


  • USD/CAD attracts some buyers around 1.3230 on the modest USD rebound.
  • A decline in oil prices weighs on the commodity-linked Loonie.
  • The US Initial Jobless Claims figure for the third week of December fell short of expectations.
  • Traders await the December’s Chicago Purchasing Managers' Index (PMI).

The USD/CAD pair recovers some lost ground during the Asian session on Friday. The rebound of the pair is supported by the modest gains of the US dollar (USD) and a decline in oil prices. However, the bearish outlook of USD/CAD remains intact as the pair holds below the key 100-day Exponential Moving Average (EMA) on the daily chart. USD/CAD currently trades near 1.3230, up 0.02% on the day.

Oil prices continue to drop on Friday due to concerns about supply disruptions. This, in turn, exerts some selling pressure on the commodity-linked Loonie.

The Bank of Canada (BoC) suggested in the statement at its December meeting that the governing council felt more optimistic about the nation's inflation outlook and opened the door for additional rate hikes. However, the November Consumer Price Index (CPI) did not slow down, which might offer some hints that the odds of another interest rate hike have fallen.

On the other hand, investors expect interest rate cuts in the US next year. The Federal Reserve (Fed) maintained rates unchanged at 5.25%-5.50% at its last meeting of the year. Fed Chair Jerome Powell stated that the timing of rate cuts would be the Fed's "next question.” The shift of the Fed's stance to dovish has dragged the Greenback lower across the board and sent bond yields lower.

The US Department of Labor revealed on Thursday that the weekly Initial Jobless Claims figure fell short of expectations, coming in at 218K for the week ending December 23 from the previous week's figure of 206K, below the projected 210K. Meanwhile, Pending Home Sales in the United States remained flat at 0%, weaker than the estimation of 1.0%.

The Chicago Purchasing Managers' Index (PMI) for December will be published later on Friday from the US docket, and it is expected to decline from 55.8 to 51.0. The market has another quiet session as traders enter holiday mode heading into 2024.

 

USD/CAD

Overview
Today last price 1.3231
Today Daily Change 0.0003
Today Daily Change % 0.02
Today daily open 1.3228
 
Trends
Daily SMA20 1.342
Daily SMA50 1.3606
Daily SMA100 1.359
Daily SMA200 1.349
 
Levels
Previous Daily High 1.3236
Previous Daily Low 1.3182
Previous Weekly High 1.3409
Previous Weekly Low 1.3219
Previous Monthly High 1.3899
Previous Monthly Low 1.3541
Daily Fibonacci 38.2% 1.3215
Daily Fibonacci 61.8% 1.3203
Daily Pivot Point S1 1.3195
Daily Pivot Point S2 1.3162
Daily Pivot Point S3 1.3142
Daily Pivot Point R1 1.3248
Daily Pivot Point R2 1.3269
Daily Pivot Point R3 1.3302

 

 

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 smashes 1.0800 as US election exit polls point to a Trump lead

EUR/USD smashes 1.0800 as US election exit polls point to a Trump lead

EUR/USD extends the sell-off below 1.0800, down nearly 1.50% so far, as the focus remains on the US Presidential election. With polls closed in most states, including critical battlegrounds, the Republican nominee is seen taking the lead, spurring a US Dollar rally. 

EUR/USD News
USD/JPY storms through 154.00 on a potential Trump win

USD/JPY storms through 154.00 on a potential Trump win

As initial results show former President Donald Trump may return to office, USD/JPY keeps pushing higher, recapturing 154.00 early Wednesday. The US Dollar recovers broadly, while stock markets are also on the run. More polls coming that may change the picture.

USD/JPY News
Gold price bulls remain on the sidelines, around $2,740 after early US election results

Gold price bulls remain on the sidelines, around $2,740 after early US election results

Gold price edges lower on Wednesday in reaction to the initial US election exit polls. Improving the odds of a Trump victory boosts the USD and weighs on the XAU/USD. A sharp rise in the US bond yields further undermine the non-yielding yellow metal.

Gold News
Breaking: Bitcoin breaks above its all-time high of $73,777 ahead of election results

Breaking: Bitcoin breaks above its all-time high of $73,777 ahead of election results

Bitcoin broke above its all-time high of $73,777 on Wednesday, fueled by Donald Trump's lead in the polls. Momentum indicators confirmed a bullish bias. BTC's next target could be the 141.40% Fibonacci extension level at $78,777.

Read more
DOGE could hit a new yearly high after 50% rally in twenty days

DOGE could hit a new yearly high after 50% rally in twenty days

Dogecoin is up 8% on Tuesday following rising expectations of a Donald Trump victory in the ongoing U.S. presidential elections. If the bullish momentum continues, the meme coin leader could rise to a new yearly high.

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