The USD/CAD pair catches aggressive bids following the previous day's subdued/range-bound price action and jumps to its highest level since April 28 d
Retreating Crude Oil prices undermines the Loonie and acts as a tailwind amid a bullish USD.The USD/CAD pair
catches aggressive bids following the previous day's subdued/range-bound price action and jumps to its highest level since April 28 during the early European session on Tuesday. Spot prices currently trade just above mid-1.3600s, up over 0.50% for the day, and seem poised to prolong the recent upward trajectory witnessed over the past month or so.
Meanwhile, China's slow approach to rolling out more stimulus measures tempers investors' appetite for riskier assets, which is evident from the prevalent cautious mood around the equity markets. Apart from this, expectations that the Federal Reserve will keep interest rates higher for longer, reinforced by a fresh leg up in the US Treasury bond yields, acts as a tailwind for the safe-haven buck and contributes to the USD/CAD pair's strong move up.
Despite signs that labour market conditions in the US were easing, the markets are still pricing in the possibility of one more 25 bpsrate hike move by the end of this year. The bets were lifted following the hotter-than-expected release of inflation data from South Korea, Thailand and the Philippines. This, in turn, pushes the USD Index , which tracks the Greenback against a basket of currencies, to over a three-month high and favours the USD/CAD bulls.
Even from a technical perspective, acceptance above the 1.3600 mark and a subsequent strength beyond the 1.3635-1.3640 hurdle validate the near-term positive outlook. That said, the Relative Strength Index is flashing overbought conditions on hourly charts and warrants some caution before placing fresh bullish bets. Nevertheless, the aforementioned fundamental backdrop suggests that the path of least resistance for the USD/CAD pair is to the upside.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/CAD Price Analysis: Remains on the defensive below 1.3600, setup favours bullish tradersThe USD/CAD pair struggles to capitalize on Friday's solid recovery from levels just below the 1.3500 psychological mark or a two-week low and kicks o
Read more »
USD/CAD Price Analysis: Fades bounce off 21-DMA below 1.3600, eyes on BoC, Canada employmentUSD/CAD clings to mild losses around 1.3585 heading into Monday’s European session as market players consolidate Friday’s heavy gains amid a sluggish
Read more »
USD/CAD treads waters towards 1.3600, focus on BoC policy decisionUSD/CAD trades higher around 1.3590, extending gains on the second day during the Asian session on Monday. The Canadian Dollar (CAD) is experiencing d
Read more »
USD/CAD consolidates around 1.3600, investors sidelined ahead of BoC monetary policyThe USD/CAD pair remains sideways after a vertical rally near the round-level resistance of 1.3600 in the late European session. The Loonie asset is e
Read more »
USD/CAD trades sideways below the 1.3600 mark, BoC rate decision, US Services PMI eyedThe USD/CAD pair consolidates its losses below the 1.3600 mark during the early Asian trading hours on Tuesday. The major pair currently trades near 1
Read more »
USD/CAD Price Analysis: Loonie bulls attack multi-day-old resistance of 1.3610 ahead of key catalystsUSD/CAD pierces the 1.3600 threshold as buyers attack a downward-sloping resistance line from late April amid the very early Tuesday morning in Europe
Read more »