USD/CAD bulls attack 1.3700 as yields underpin US Dollar rebound, Oil drops – Crypto News – Crypto News
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Bulls keep reins beyond 1.2850 support confluence Bulls keep reins beyond 1.2850 support confluence

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USD/CAD bulls attack 1.3700 as yields underpin US Dollar rebound, Oil drops – Crypto News

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2 years ago

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  • USD/CAD picks up bids to reverse the week-start losses.
  • The US Dollar benefits from the BOJ-inflicted losses in bond, stock markets.
  • Oil prices weaken amid economic fears surrounding China.
  • Canada Retail Sales, US housing data eyed for fresh impulse.

USD/CAD Clings to mild gains around 1.3700 as the US Dollar reverses intraday losses heading into Tuesday’s European session. The Loonie pair’s run-up could also be linked to the downside move of Canada’s main export item, namely WTI crude. oil,

That said, the US Dollar Index (DXY) picks up bids to pare recent losses around 104.50 as the Treasury bond yields rally on the Bank of Japan’s (BOJ) surprise. Recently, the BOJ tweaked its policy to widen the Yield Curve Control (YCC) measures while keeping the monetary policy unchanged.

Also underpinning the US Dollar’s latest rebound could be the economic fears surrounding China, as well as the globe. Behind the moves could be the World Bank’s cut in China’s economic forecasts as well as the hawkish actions of the major central banks to tame inflation, especially when the recession fears are already looming.

However, comparatively less hawkish comments from the fed Officials join softer US PMIs to challenge DXY bulls.

Elsewhere, WTI takes offers to refresh intraday low near $75.50, down half a percent at the latest. The European leaders’ agreement on the oil price cap for Russian energy exports also seems to exert downside pressure on the black gold prices,

Amid these plays, S&P 500 Futures and the Asia-Pacific shares print losses while the US 10-year Treasury yield rises for the third consecutive day to refresh the monthly peak near 3.70%, at 3.67% by the press time.

Looking forward, the risk-aversion wave may help USD/CAD buyers ahead of the Canadian Retail Sales for October, expected -0.3% versus 0.5% prior. On the other hand, US Building Permits and Housing Starts for November may also direct short-term pair moves.

technical analysis

A daily closing beyond the 1.3700 hurdle, comprising multiple tops marked in the last two weeks, becomes necessary for the USD/CAD bulls to aim for the previous monthly high near 1.3810. Otherwise, a pullback towards the 50-DMA support of 1.3557 can’t be ruled out.

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