- 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
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 extends slide below 1.1350 on renewed USD strength
EUR/USD extends its daily slide and trades below 1.1350 in the American session on Friday. Renewed US Dollar strength on growing optimism about a de-escalation of the US-China trade war makes it difficult for the pair to hold its ground heading into the weekend.
GBP/USD consolidates losses near 1.3300 after UK Retail Sales data
GBP/USD remains under moderate selling pressure near 1.3300 despite the upbeat UK Retail Sales data for March. The pair feels the heat of the solid US Dollar rebound, aided by latest headlines hinting at a softening rhetoric in the ongoing US-China trade conflict.
Gold drops toward $3,250 as market mood improves
Gold turns south following Thursday's rebound and declines toward $3,250 on Friday. The bearish pressure builds up as market mood improves on growing optimism about a de-escalation of the US-China trade conflict after US President Trump hinted at the beginning of negotiations.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.