USD/CAD sticks to modest gains above mid-1.3500s, upside potential seems limited


  • USD/CAD edges higher on Thursday, though the uptick lacks any follow-through buying.
  • The less hawkish BoC decision, softer oil prices undermine the loonie and offer support.
  • The USD languishes near the monthly low and acts as a headwind ahead of the US GDP.

The USD/CAD pair attracts some buying on Thursday and sticks to its modest intraday gains through the early European session. The pair is currently placed just above the mid-1.3500s, though the uptick lacks bullish conviction.

The US dollar languishes near its lowest level since September 20 touched the previous day and acts as a headwind for the USD/CAD pair. Signs of a slowdown in the US economy cooled market expectations for a more aggressive policy tightening by the Federal Reserve. This has been a key 
factor behind the recent sharp pullback in the US Treasury bond yields, which continues to weigh on the greenback.

Moreover, a positive tone around the equity markets further contributes to capping the upside for the safe-haven buck. That said, the Bank of Canada's less hawkish move on Wednesday, to raise rates by 50 bps as against 75 bps anticipated, limits the downside for the USD/CAD pair. Furthermore, a modest downtick in crude oil prices undermines the commodity-linked loonie and offers support to the major.

The mixed fundamental backdrop warrants some caution for aggressive traders and positioning for a firm intraday direction. Market participants now look forward to the release of the Advance US Q3 GDP report, due later during the early North American session. Thursday's US economic docket also features Durable Goods Orders and the usual Weekly Initial Jobless Claims, which might influence the USD.

Traders will also take cues from the broader market risk sentiment and oil price dynamics to grab short-term opportunities around the USD/CAD pair. The focus, however, remains glued to next week's FOMC policy meeting. This, along with the closely-watched US monthly jobs report (NFP), will play a key role in determining the next leg of a directional move for the greenback and the major.

Technical levels to watch

USD/CAD

Overview
Today last price 1.3558
Today Daily Change 0.0006
Today Daily Change % 0.04
Today daily open 1.3552
 
Trends
Daily SMA20 1.3714
Daily SMA50 1.3405
Daily SMA100 1.3154
Daily SMA200 1.2927
 
Levels
Previous Daily High 1.3652
Previous Daily Low 1.3508
Previous Weekly High 1.3885
Previous Weekly Low 1.363
Previous Monthly High 1.3838
Previous Monthly Low 1.2954
Daily Fibonacci 38.2% 1.3563
Daily Fibonacci 61.8% 1.3597
Daily Pivot Point S1 1.3489
Daily Pivot Point S2 1.3426
Daily Pivot Point S3 1.3345
Daily Pivot Point R1 1.3633
Daily Pivot Point R2 1.3714
Daily Pivot Point R3 1.3777

 

 

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 recovers from two-year lows, stays below 1.0450

EUR/USD recovers from two-year lows, stays below 1.0450

EUR/USD recovers modestly and trades above 1.0400 after setting a two-year low below 1.0350 following the disappointing PMI data from Germany and the Eurozone on Friday. Market focus shifts to November PMI data releases from the US.

EUR/USD News
GBP/USD falls to six-month lows below 1.2550, eyes on US PMI

GBP/USD falls to six-month lows below 1.2550, eyes on US PMI

GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2550 on Friday. Disappointing PMI data from the UK weigh on Pound Sterling as investors await US PMI data releases.

GBP/USD News
Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark

Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark

Gold price hits a fresh two-week top during the first half of the European session on Friday, with bulls now looking to build on the momentum further beyond the $2,700 mark. This marks the fifth successive day of a positive move and is fueled by the global flight to safety amid persistent geopolitical tensions stemming from the intensifying Russia-Ukraine war.

Gold News
S&P Global PMIs set to signal US economy continued to expand in November

S&P Global PMIs set to signal US economy continued to expand in November

The S&P Global preliminary PMIs for November are likely to show little variation from the October final readings. Markets are undecided on whether the Federal Reserve will lower the policy rate again in December.

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