USD/CAD tumbles to 1.3125, 2-day lows on BoC Wilkins comments

CAD jumped across the board after Wilkins mentioned BoC discussed accelerate rate hikes.
USD/CAD lost 70 pips in a few minutes, moving significantly away from 6-week highs.

Matías Salord FXStreet

The USD/CAD pair fell from 1.3200 to 1.3125, hitting a fresh daily low. The move was triggered by comments from Bank of Canada, Senior Deputy Governor Carolyn Wilkins. She commented that during the last meeting BoC debated about whether to accelerate potential rate hikes and then added that when the economy is running near capacity for a year, rates typically rise.

The loonie jumped across the board and turned positive for the day. Against the US dollar, it erased losses and USD/CAD is now headed toward the second daily loss in a row. Earlier today the pair reached at 1.3225, the highest level since July 20 but if quickly pulled back to the 1.3200-1.3150 range that has been broke to the downside with the recent move. Today’s slide could signal a potential interim peak.

USD/CAD Levels to watch

Volatility remains highs across loonie’s crosses. USD/CAD was trading slightly below 1.3150. Ahead of the Asian session, support levels might be located at 1.3125 (daily low), 1.3100/05 (Aug 24 high) and 1.3080. On the upside, resistance might now be seen at 1.3160/65, 1.3200 and 1.3225 (Sep 6 high).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD holds losses below 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot below 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand and reports that ECB President Lagarde will step down before the end of her term. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.