USD/CAD recovers from 2-week lows

20 March, 2019

Resurfacing US-China trade tensions helped revive the USD demand.  A modest pull-back in oil prices undermine Loonie and remain supportive. Focus remains on the latest FOMC monetary policy update, due later today.

The USD/CAD pair traded with a positive bias through the early European session and built on the overnight sharp rebound from over two-week lows.

Despite the prevalent strong bullish sentiment surrounding crude oil prices, which tend to underpin demand for the commodity-linked currency - Loonie, the pair showed remarkable resilience below 50-day SMA and staged a solid bounce during the US trading session on Tuesday. 

The recovery extended through the early part of Wednesday's trading session and was further fueled by a combination of supporting factors - a modest pickup in the US Dollar demand and a subdued action around crude oil prices, amid reemerging US-China trade tensions.

Bloomberg report that some US officials expressed concern that China is pushing back against the US demands in trade talks provided a minor boost to the greenback’s relative safe-haven status and prompted some profit-taking trade around oil markets. 

The up-move, however, lacked strong bullish conviction as investors now seemed reluctant to place aggressive bets, rather preferred to wait on the sidelines ahead of today's key event risk - the latest FOMC monetary policy update, due to be announced later today.

The key focus will be on the accompanying monetary policy statement, which coupled with the updated economic projections might help investors determine the greenback’s near-term trajectory and eventually provide some fresh directional impetus to the major.


Source link   Presented by HYCM

USD/CAD retreats from session highs,

US Dollar Index loses traction in the last hour. WTI clings to small daily gains near $55 handle. Coming up: Consumer Price Index (CPI) data...

USD/CAD rebounds from multi-month lows

A sharp pullback in Oil prices undermined Loonie and helped gain some positive traction. Fed rate cut bets kept the USD bulls on the defensive...

USD/CAD sticks to modest gains

A modest pull-back in Oil prices undermine Loonie and helped regain traction. The USD continues to attract some safe-haven flows and remained...


CAD boosted by jobs report

The Canadian dollar has continued to rally against its US counterpart, following on from Friday’s sold gains after a better than expected jobs report...

USD/CAD struggles to make a recovery

US Dollar Index stays calm above the 97 mark. WTI tries to retrace Wednesday's sharp drop. Coming up: Trade balance data...

CAD hitches a ride as crude prices surges

The Canadian dollar rose on the back of rising crude oil prices. WTI crude oil closed on Monday with 2.45% gains. This allowed the Canadian dollar...


USD/CAD eases from near 4-week tops

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...

USD/CAD started to descend

At the moment CAD is consolidating at 1.35700-1.36200. A technical correction is highly probable. You should open positions from the key levels...

USD/CAD consolidates after a long rally

There is no singular trend. Luni is testing the key support and resistance levels of 1.32650 and 1.36150. A technical correction is possible soon...

  


Share it on:   or