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USDCAD NEWS : USDCAD trades with modest losses below 1.3600 amid bullish Oil prices, weaker USD

TODAY USDCAD UPDATE

USDCAD NEWS : USDCAD trades with modest losses below 1.3600 amid bullish Oil prices, weaker USD

  • USD/CAD meets with a fresh supply on Friday and is pressured by a combination of factors.
  • Bullish Oil prices underpin the Loonie and act as a headwind amid a modest USD weakness.
  • Recession fears, hawkish Fed expectations should limit losses for the USD and lend support.

USDCAD NEWS : The USD/CAD pair attracts some sellers near the 1.3600 round-figure mark on Friday and maintains its offered tone through the early European session. The pair is currently placed around the 1.3575 region, down just over 0.10% for the day, though any meaningful downside still seems elusive.

Crude Oil prices hold steady near a two-week high touched on Thursday amid the latest optimism about a strong fuel demand recovery in China – the world’s top importer. This, in turn, is seen underpinning the commodity-linked Loonie, which, along with a modest US Dollar downtick, exerts some downward pressure on the USD/CAD pair. That said, growing worries that rapidly rising borrowing costs will dampen global economic growth and dent fuel demand could cap gains for Oil prices. Apart from this, hawkish Fed expectations support prospects for the emergence of some USD dip buying and should contribute to limiting losses for the major.

USDCAD NEWS : The US CPI, PPI and the PCE Price Index released recently indicated that inflation isn’t coming down quite as fast as hoped. Moreover, the incoming upbeat US macro data, including the Initial Jobless Claims on Thursday, pointed to a resilient economy. Adding to this, a slew of FOMC members backed the case for higher rate hikes to tame stubbornly high inflation and remains supportive of elevated US bond yields. In fact, the yield on the benchmark 10-year US government bond rose to its highest level since last November and the rate-sensitive two-year Treasury note shot to levels last seen in July 2007, which, in turn, favours the USD bulls.

Apart from this, speculations that the Bank of Canada (BoC) could pause the policy-tightening cycle, bolstered by the softer Canadian CPI report released last week, warrant caution before placing aggressive bearish bets around the USD/CAD pair. Hence, it will be prudent to wait for strong follow-through selling before confirming that the recent upward trajectory witnessed over the past two weeks or so has run its course. Traders now look to the release of the US ISM Services PMI, due later during the early North American session. Apart from this, Oil price dynamics should provide some meaningful impetus on the last day of the week.

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FIRST CAPITALS brand is authorized and regulated in various jurisdictions.

First Capitals Limited (www.First Capitals.com/eu) is regulated by the Cyprus Securities and Exchange Commission with CIF license number 185/12, licensed by the Financial Sector Conduct Authority (FSCA) of South Africa, with FSP No. 46614. The company is also registered with the Financial Conduct Authority of the UK with number 600475.

First Capitals (www.First Capitals.com/uk) is authorised and regulated by the Financial Conduct Authority with license number 777911.

Exinity Limited (www.First Capitals.com/uk) is regulated by the Financial Services Commission of the Republic of Mauritius with an Investment Dealer License bearing license number C113012295.

Card transactions are processed via FT Global Services Ltd, Reg No. HE 335426 and registered address at Ioannis Stylianou, 6, Floor 2, Flat 202 2003, Nicosia, Cyprus, and via Exinity Services Ltd , Reg No. HE 400404 and registered address at Agiou Georgiou Makri, 64, Anna Maria Lena Court, Flat 201, 6037, Larnaca, Cyprus. Address for cardholder correspondence: backoffice@First Capitals.com.. Business location address: FIRST CAPITALS Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus.

Exinity Limited is a member of Financial Commission, an international organization engaged in a resolution of disputes within the financial services industry in the Forex market.

Risk Warning: Trading Forex and Leveraged Financial Instruments involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Trading non-leveraged products such as stocks also involves risk as the value of a stock can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary. It is the responsibility of the Client to ascertain whether he/she is permitted to use the services of the FIRST CAPITALS brand based on the legal requirements in his/her country of residence.  Please read FIRST CAPITALS’s full Risk Disclosure.

Regional restrictions: FIRST CAPITALS brand does not provide services to residents of the USA, Mauritius, Japan, Canada, Haiti, Suriname, the Democratic Republic of Korea, Puerto Rico, Brazil, the Occupied Area of Cyprus and Hong Kong. Find out more in the Regulations section of our FAQs.

© 2011 – 2021 FIRST CAPITALS