USD/CAD remains depressed below 1.3000 amid modest USD weakness, uptick in oil prices
FXStreet · 24 Jun 2022 521 Views
  • A combination of factors prompted fresh selling around USD/CAD on Friday.
  • The risk-on impulse weighed the safe-haven USD and exerted some pressure.
  • An uptick in oil prices underpinned the loonie and added to the selling bias.

The USD/CAD pair extended the overnight late pullback from the 1.3015 region and witnessed some follow-through selling on Friday. The pair remained on the defensive through the early European session and was last seen trading near the daily low, around the 1.2980-1.2975 area.

A turnaround in the global risk sentiment - as depicted by a generally positive tone around the equity markets - prompted some selling around the safe-haven US dollar. Apart from this, a modest uptick in crude oil prices underpinned the commodity-linked loonie and exerted downward pressure on the USD/CAD pair.

The Canadian dollar drew additional support from stronger domestic consumer inflation figures released on Wednesday, which lifted bets for a 75 bps rate hike move by the Bank of Canada in July. That said, hawkish Fed expectations should continue to lend support to the greenback and limit losses for the USD/CAD pair.

The markets seem convinced that the Fed would stick to its aggressive policy tightening path and hike interest rates by 75 bps in July to curb soaring inflation. This, in turn, warrants some caution for aggressive bearish traders before traders start positioning for any further depreciating move for the USD/CAD pair.

Market participants now look forward to a scheduled speech by St. Louis Fed President James Bullard, which along with the release of the revised Michigan Consumer Sentiment Index and New Home Sales data might influence the USD. Apart from this, oil price dynamics might provide some impetus to the USD/CAD pair.

Technical levels to watch


Today last price 1.298
Today Daily Change -0.0014
Today Daily Change % -0.11
Today daily open 1.2994
Daily SMA20 1.2778
Daily SMA50 1.2796
Daily SMA100 1.2728
Daily SMA200 1.2677
Previous Daily High 1.3018
Previous Daily Low 1.2936
Previous Weekly High 1.3079
Previous Weekly Low 1.2774
Previous Monthly High 1.3077
Previous Monthly Low 1.2629
Daily Fibonacci 38.2% 1.2987
Daily Fibonacci 61.8% 1.2967
Daily Pivot Point S1 1.2948
Daily Pivot Point S2 1.2901
Daily Pivot Point S3 1.2867
Daily Pivot Point R1 1.3029
Daily Pivot Point R2 1.3064
Daily Pivot Point R3 1.3111

Affected Trading Instrument

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