USD/CAD eases from near 4-week tops

29 March, 2019

The USD fails to benefit from a strong recovery in the US bond yields. Resurgent oil prices underpin Loonie and prompt some profit-taking. Traders now eye Canadian monthly GDP/US data for a fresh impetus.

The USD/CAD pair traded with a mild negative bias through the early European session and is currently placed at session lows, around the 1.3425-20 region.

The pair failed to capitalize on its positive move witnessed over the past two trading sessions and struggled to make it through the 1.3450 supply zone, with a combination of factors prompting some profit-taking on the last trading day of the week. 

Despite a strong follow-through recovery in the US Treasury bond yields, the US Dollar consolidated the overnight goodish up-move to near three-week tops and was seen as one of the key factors keeping a lid on any follow-through up-move for the major.

Meanwhile, traders shrugged off the US President Donald Trump’s tweet about high oil prices on Thursday and a fresh leg of a positive move in crude oil prices further underpinned the commodity-linked currency and added to the pair's offered tone. 

The downside, however, remained limited as market participants now look forward to the release of monthly Canadian GDP print, which coupled with the Fed's preferred inflation gauge - core PCE Price Index might produce some meaningful trading opportunities.

Any further pull-back now seems to find some support near the 1.3400 handle, below which the pair is likely to accelerate the slide towards weekly lows, around the 1.3375-70 region, before eventually dropping to test the 1.3340-35 support area.

On the flip side, the 1.3440-50 region might continue to act as an immediate strong hurdle, which if cleared decisively would set the stage for a further appreciating move and assist the pair to aim towards reclaiming the key 1.3500 psychological mark.


Source link  
Gold drops to fresh session lows

Fails to capitalize on last week's goodish bounce, despite a subdued USD demand. A goodish bounce in US bond yields/risk-on mood prompts some fresh selling...

Gold to retest trend channel resistance

The precious metal's corrective slide on Friday, from near six month tops, stalled ahead of an important confluence resistance break-point now turned support...

Gold looks to $1210 ahead of US data

Stalled US dollar bounce combined with negative European equities, Treasury yields underpin. Volatile within $ 5 range ahead of the US core PCE data...


Gold and oil shorts covered

According to the CFTC Weekly Report (W/E July 10), as the WTI crude oil spiked toward $75/bbl amid fears of supply shortages and low spare capacity, which...

Global markets in a delicate spot

Analysts at Westpac, suggest that global markets remain in a delicate spot due to ongoing uncertainty of the US/China trade saga and growing geopolitical tensions...

Powell to stick to gradual path

Analysts at Deutsche Bank suggest that new Fed Chair Powell’s testimony is at 3pm GMT and he will be speaking on behalf of the FOMC...


GBP futures: bottomed out?

In light of advanced figures for GBP futures markets, open interest decreased by almost 5K contracts on Friday vs. Thursday's 209,855 contracts...

Strong market sentiment continues

Chief Analyst, Allan von Mehren at Danske Bank suggests that global market sentiment continues to be strong with further decent increases in stock...

A week with no market movers

In the US, the coming week brings no market movers. The week after New Year’s Eve, however, brings several interesting releases. As the statement from the meeting..

  


Share it on:   or