USD/CAD depreciates to near 1.3750 on improved risk sentiment amid weaker crude Oil

Source Fxstreet
  • USD/CAD loses ground due to the subdued US Dollar on Thursday.
  • Lower US Treasury yields put pressure on the Greenback.
  • The decline in the WTI price may limit the advance of the Canadian Dollar.

USD/CAD extends its losses for the second consecutive session on Thursday, trading around 1.3750 during the Asian session. The pair follows the retreat from the five-month high of 1.3846 reached on Tuesday.

Meanwhile, the US Dollar Index (DXY) loses ground, primarily influenced by subdued US Treasury yields. DXY falls to near 105.90 with the 2-year and 10-year yields on US Treasury bonds stand at 4.92% and 4.57%, respectively, by the press time. This decline in the US Dollar exerts pressure on the USD/CAD pair.

The US Dollar faced challenges after the neutral remarks from the Federal Reserve’s (Fed) official. Fed Governor Michelle Bowman remarked on Wednesday that progress in inflation is slowing, with a potential stall. Bowman also noted that monetary policy is currently restrictive, and its adequacy will be evaluated over time.

Furthermore, Federal Reserve Bank of Cleveland President Loretta Mester acknowledged that inflation has exceeded expectations. She emphasized that the Fed needs more assurance before confirming the sustainability of 2% inflation.

On the flip side, the downward trend in crude Oil prices might constrain the Canadian Dollar's (CAD) upward momentum, considering Canada's status as the largest Oil exporter to the United States (US). West Texas Intermediate (WTI) Oil price dips to nearly $82.30 per barrel at the time of writing. Market concerns persist regarding demand for this year, particularly in light of indications suggesting the potential avoidance of a broader conflict in the Middle East.

The advance of the Canadian Dollar could be short-lived due to the dovish sentiment surrounding the Bank of Canada (BoC), which could mitigate losses in the USD/CAD pair. There are expectations for a 25 basis points (bps) rate cut from the BoC in June. This sentiment is reinforced by the mixed Canadian inflation data released on Tuesday.

USD/CAD

Overview
Today last price 1.3754
Today Daily Change -0.0019
Today Daily Change % -0.14
Today daily open 1.3773
 
Trends
Daily SMA20 1.3621
Daily SMA50 1.3557
Daily SMA100 1.349
Daily SMA200 1.3523
 
Levels
Previous Daily High 1.3838
Previous Daily Low 1.376
Previous Weekly High 1.3787
Previous Weekly Low 1.3547
Previous Monthly High 1.3614
Previous Monthly Low 1.342
Daily Fibonacci 38.2% 1.3789
Daily Fibonacci 61.8% 1.3808
Daily Pivot Point S1 1.3742
Daily Pivot Point S2 1.3712
Daily Pivot Point S3 1.3664
Daily Pivot Point R1 1.3821
Daily Pivot Point R2 1.3868
Daily Pivot Point R3 1.3899

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decisionThe US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
Author  Mitrade
Sep 28, Mon
The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
placeholder
【Daily Brief】30-year Treasury tops 5.59%, S&P 500 slips to 7,670 and gold holds $4,180 — PCE lands tonightThe 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
Author  Suzie
Sep 30, Wed
The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.
placeholder
Gold falls to near $4,150 as higher Treasury yields, oil prices outweigh softer PCE inflationGold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday. 
Author  FXStreet
Yesterday 01: 26
Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday. 
placeholder
United States Dollar Index sits near March 2025 highs, above 102.00 ahead of US NFPThe US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts buyers for the fifth straight day and climbs back above the 102.00 mark during the Asian session on Friday.
Author  FXStreet
12 hours ago
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts buyers for the fifth straight day and climbs back above the 102.00 mark during the Asian session on Friday.
Related Instrument
goTop
quote