- USD/CAD attracts some buyers near 1.3700, though the attempted recovery lacks follow-through.
- An uptick in Oil prices underpins the Loonie and acts as a headwind amid subdued USD price action.
- Traders also seem reluctant to place aggressive bets ahead of the crucial US consumer inflation data.
The USD/CAD pair bounces off a nearly four-week trough touched during the Asian session on Wednesday and reverses a part of the previous day's downfall. Spot prices manage to hold above the 1.3700 mark, though lack bullish conviction, warranting some caution before positioning for any meaningful recovery.
Crude Oil prices regain positive traction amid estimates of a fall in US inventories and the risk of a broadening conflict in the Middle East, which is seen underpinning the commodity-linked Loonie and acting as a headwind for the USD/CAD pair. The American Petroleum Institute (API) data showed on Tuesday that US crude stocks shrunk by 5.21 million barrels during the week ended August 9, suggesting higher demand in the world's biggest oil consumer.
Meanwhile, the US Dollar (USD) languishes near its lowest level in over a week amid expectations for deeper interest rate cuts by the Federal Reserve (Fed), bolstered by a softer-than-expected US Producer Price Index (PPI) data on Tuesday. In fact, the US Bureau of Labor Statistics reported on Tuesday that the Producer Price Index (PPI) for final demand decelerated sharply from the 2.7% YoY rate to 2.2% in July, suggesting that inflation continues to moderate.
The weaker reading lifted bets for a bigger, 50 basis points (bps) rate cut by the Fed in September and dragged the US Treasury bond yields lower across the board. This, along with the risk-on mood, continues to weigh on the safe-haven buck and contributes to capping the upside for the USD/CAD pair. Hence, the intraday uptick could be solely attributed to some repositioning trade ahead of the crucial US consumer inflation figures, due for release later this Wednesday.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.01% | 0.04% | -0.25% | 0.07% | 0.05% | 0.73% | -0.11% | |
| EUR | -0.01% | 0.02% | -0.27% | 0.04% | 0.09% | 0.69% | -0.11% | |
| GBP | -0.04% | -0.02% | -0.26% | 0.05% | 0.07% | 0.70% | -0.10% | |
| JPY | 0.25% | 0.27% | 0.26% | 0.34% | 0.34% | 0.97% | 0.21% | |
| CAD | -0.07% | -0.04% | -0.05% | -0.34% | 0.00% | 0.64% | -0.13% | |
| AUD | -0.05% | -0.09% | -0.07% | -0.34% | 0.00% | 0.60% | -0.18% | |
| NZD | -0.73% | -0.69% | -0.70% | -0.97% | -0.64% | -0.60% | -0.77% | |
| CHF | 0.11% | 0.11% | 0.10% | -0.21% | 0.13% | 0.18% | 0.77% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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
Editors’ Picks
EUR/USD stays in positive territory near 1.1000, looks to post weekly gains
EUR/USD trades modestly higher on the day at around 1.1000 in the American session on Friday. Although the cautious market stance limits the upside, the pair remains on track to post its highest weekly close of 2024.
GBP/USD climbs to multi-week highs above 1.2900
GBP/USD trades at its highest level in three weeks at around 1.2900 in the American session on Friday. The bearish opening seen in Wall Street points to a negative tilt in risk mood and makes it difficult for the pair to gather further bullish momentum.
Gold retreats after setting a new record high of $2,500
Gold stages a technical correction and trades below $2,490 after setting a new record high of $2,500 earlier in the day, boosted by falling US Treasury bond yields. Profit-taking could ramp up the volatility heading into the weekend.
Dogecoin price is set for a downturn as it encounters its resistance barrier
Dogecoin price is testing the resistance around the 100-day EMA at $0.1073, with an impending decline ahead. On-chain data shows DOGE's daily active addresses decreasing and dormant wallets moving again, signaling a bearish move.
Easing inflation worries despite robust sales data
The market mood got a further boost yesterday after the latest data release from he US hinted that the economy is not doing that bad, after all.