USD/CAD hovers around the 20-day EMA around 1.3420s – Crypto News – Crypto News
Connect with us
Bulls keep reins beyond 1.2850 support confluence Bulls keep reins beyond 1.2850 support confluence

others

USD/CAD hovers around the 20-day EMA around 1.3420s – Crypto News

Published

3 years ago

on

  • USD/CAD struggles for direction as the US Dollar rises, while oil prices capped the upside.
  • US Treasury bond yields spurred the uptick in the US Dollar, keeping the USD/CAD above its 20-DMA.
  • Thursday’s US Consumer Price Index (CPI) and Jobless Claims would provide fresh impetus to USD/CAD traders.

The USD/CAD registers minuscule losses in the mid-North American session after hitting a daily low of 1.3357. Market sentiment remains fragile, fluctuating, while a late bid in the US Dollar (USD) spurred a jump in the USD/CAD pair. At the time of writing, the USD/CAD is trading at 1.3424, down slightly by 0.14%.

USD/CAD is directionless, influenced by a strong US Dollar, high oil prices

US equities are seeing amid a mixed mood. The greenback is paring some of its losses, according to the US Dollar Index (DXY), which measures the buck’s performance against a basket of peers, was up 0.11% at 103.281, underpinned by higher US bond yields. The US 10-year benchmark note rate is climbing nine bps, to 3.630%, after US Federal Reserve (Fed) Chief Jerome Powell’s speech did not acknowledge the monetary policy.

Of late, Federal Reserve Governor Michell Bowman said that continued rate hikes are needed to curb inflation. She added that she’s looking for “convincing evidence” that inflation has peaked and that incoming data will influence her view on the size of interest rate hikes.

On the Canadian side, a staggering labor market report last Friday increased the likelihood of a 25 bps rate hike, according to TD Securities analysts. “Today’s report leaves the Bank of Canada in an uncomfortable position.” They added that deceleration in wages would not satisfy Bank of Canada’s (BoC) policymakers and stated, “we now look for the Bank to hike another 25bps to 4.50% in January. We expect that 4.50% will be the BoC’s terminal rate for this cycle.

In the meantime, a jump in crude oil prices is putting a lid on the USD/CAD recovery as WTI climbs 0.86%, exchanging hands around $75.44 per barrel.

Ahead of the week, the US economic docket will feature the release of the Consumer Price Index (CPI) for December, alongside unemployment claims, on Thursday. An absent Canadian economic calendar would leave USD/CAD traders adrift to US Dollar dynamics.

USD/CAD Key Technical Levels

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending