HFM information and reviews
Octa information and reviews
FXCC information and reviews
FxPro information and reviews
FBS information and reviews
Vantage information and reviews

USD/CAD ignores Oil price recovery as bulls approach 1.3600 ahead of Canada GDP

28 February 2023

USD/CAD picks up bids to reverse the week-start pullback from monthly top. Cautious optimism underpins WTI rebound amid sluggish session. US Dollar remains on the way to posting the first monthly gain in five amid hawkish Fed concerns. Canada's Q4 GDP could help Loonie pair buyers on matching downbeat forecasts.

USD/CAD prints a gradual rebound from intraday low amid a sluggish end to February, picking up bids to 1.3585 heading into Tuesday’s European session. In doing so, the Loonie pair fails to justify the recent rebound in Canada’s key export item, namely WTI crude oil, as traders brace for the fourth quarter (Q4) Canadian Gross Domestic Product (GDP) data.

That said, the WTI crude oil bulls attack $76.00 while the refreshing intraday top, as well as reversing the previous day’s pullback from a one-week high. It should be noted that he hopes of easing US-China tension and hopes of upbeat inflation, as well as manufacturing activity in China, add strength to the black gold’s latest rebound. On the other hand, the US Dollar Index (DXY) prints mild gains around 104.80, following a downbeat start of the week, as greenback bulls cheer hawkish Fed bets despite mixed US data amid an unimpressive day so far.

Talking about the risk catalysts, market sentiment improves on headlines suggesting the fact that the US offers an olive branch to Chinese companies despite its political differences with the dragon nation. “Despite fraying relations with Beijing, US President Joe Biden is expected to forego expansive new restrictions on American investment in China, denying a push by some hawks in his administration and Congress,” reported Politico late Monday. However, US National Security Advisor Jake Sullivan’s comments on China suggest that the political tussle among the world’s top two economies stays on the table.

That said, mixed US data jostled with the hawkish Fed speak and the US-China tension contributed to the lack of market clarity. That said, US Durable Goods Orders slumped -4.5% in January versus -4.0% expected and 5.1% prior. However, the Nondefense Capital Goods Orders ex Aircraft grew 0.8% versus 0.0% analysts’ expectations and -0.3% previous readings. On the same line, the US Pending Home Sales rallied 8.0% MoM versus 1.0% expected and 1.1% prior. At home, Canada’s Q4 Current Account Deficit grew to -10.64B versus -8.41B.

Against this backdrop, the S&P 500 Futures print mild gains around 3,995, extending the week-start rebound from the monthly low, whereas the US two-year Treasury yields remain sidelined near 4.79% after reversing from a three-month high on Monday. That said, the US 10-year Treasury bond coupons seek clear directions near 3.92% following a downbeat start of the week.

Looking ahead, Canada’s Q4 GDP Annualized, expected to ease to 1.5% versus 2.9% prior, could keep the USD/CAD buyers hopeful. Also important to watch will be the second-tier US data, namely Conference Board’s Consumer Confidence, Chicago Purchasing Managers’ Index and Richmond Fed Manufacturing Index for February, as well as the preliminary US trade numbers for January.

Technical analysis

Unless dropping back below the previous resistance line from early November, around 1.3570 by the press time, USD/CAD remains on the bull’s radar.


Share: Tweet this or Share on Facebook


USDCAD Faces Potential Bearish Retracement Amid Technical Indicators
USDCAD Faces Potential Bearish Retracement Amid Technical Indicators

The USDCAD currency pair finds itself in a precarious position as it grapples with key technical levels and indicators that suggest a possible bearish retracement. In this analysis, we delve into the current status of USDCAD...

26 Jan 2024

USD/CAD Retreats to Near 1.3380 as Crude Prices Surge
USD/CAD Retreats to Near 1.3380 as Crude Prices Surge

The USD/CAD currency pair is experiencing a retracement of recent gains during the Asian session on Friday, with prices edging lower to hover around the 1.3380 mark...

12 Jan 2024

USD/CAD Rises to 1.3380 Amid Declining Crude Prices and Mixed US Economic Data
USD/CAD Rises to 1.3380 Amid Declining Crude Prices and Mixed US Economic Data

The USD/CAD currency pair has been on an upward trajectory, reaching around 1.3380 in the European trading session on Monday. This movement is primarily influenced...

8 Jan 2024

USDCAD Signals a Bullish Trend in the Short-Term Amid Mixed Technical Indicators
USDCAD Signals a Bullish Trend in the Short-Term Amid Mixed Technical Indicators

Introduction The USDCAD currency pair has been exhibiting signs of a bullish trend in the short term as it approaches the critical 20-day Simple Moving Average (SMA)...

5 Jan 2024

USD/CAD Rebounds as US Dollar Gains and Oil Prices Weigh on the Canadian Dollar
USD/CAD Rebounds as US Dollar Gains and Oil Prices Weigh on the Canadian Dollar

The USD/CAD pair experienced a notable rebound, approaching the 1.3260 mark in the early New York trading session. This recovery was catalyzed by a resurgence in the US Dollar Index (DXY)...

1 Jan 2024

USDCAD Wave Analysis: Preparing for a Downward Spiral
USDCAD Wave Analysis: Preparing for a Downward Spiral

The USDCAD currency pair finds itself under the grip of bearish forces as it plunges through the critical support level at 1.3410. This breach signals a potentially...

20 Dec 2023

MultiBank Group information and reviews
MultiBank Group
XM information and reviews
FP Markets information and reviews
FP Markets
FXTM information and reviews
AMarkets information and reviews
BlackBull information and reviews

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.