USD/CAD remains on the defensive around 1.3400 mark, seems vulnerable amid weaker USD – by hareshmenghani USDCAD Fed Bonds China Currencies
The US Dollar languishes near a multi-month low in the wake of dovish comments by Federal Reserve Chairman on Wednesday and acts as a headwind for the USD/CAD pair. In fact, Powell sent a clear message that the US central bank will soften its stance and said that it was time to moderate the pace of interest rate hikes. This leads to an extension of the recent sharp decline in the US Treasury bond yields and keeps the USD bulls on the defensive.
Apart from this, the risk-on mood - as depicted by a positive tone around the equity markets - is seen as another factor weighing on the safe-haven Greenback. That said, a modest retracement inprices from a one-week high touched on Wednesday undermines the commodity-linked Loonie and lends support to the USD/CAD pair. The likelihood that OPEC+ will leave output unchanged at its meeting on Sunday and demand concerns act as a headwind for the black liquid.
Nevertheless, the underlying bearish sentiment surrounding the USD suggests that the path of least resistance for the USD/CAD pair is to the downside. This, in turn, supports prospects for an extension of this week's sharp pullback from the vicinity of mid-1.3600s, or the highest level since November 4 set on Tuesday. Hence, any attempted recovery could be seen as a selling opportunity and runs the risk of fizzling out rather quickly.
Market participants now look forward to the US economic docket, highlighting the release of the Fed's preferred inflation gauge - the Core PCE
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
USD/CAD remains on the defensive around mid-1.3500s, downside seems cushionedThe USD/CAD pair comes under some selling pressure on Wednesday and retreats further from over a three-week high, around the 1.3645 region touched the
Weiterlesen »
USD/CAD: Loonie has limited potential for a recovery – CommerzbankCanadian Q3 GDP was up more than expected. Details were more downbeat however. Economists at Commerzbank maintain a CAD bearish stance. Mixed data on
Weiterlesen »
USD/CAD slides below 1.3600 as Oil grinds higher, focus on Fed updates, key US dataUSD/CAD grinds lower as it prints mild losses while refreshing intraday bottom near 1.3565 during early Wednesday morning in Europe. In doing so, the
Weiterlesen »
USD/CAD bears are in play ahead of Fed chair Powell speechUSD/CAD is under pressure by some 0.24% ahead of the Federal Reserve's chairman Jerome Powell's speech. Meanwhile, the Canadian dollar strengthened on
Weiterlesen »
USD/CAD bounces off daily low, finds support near 1.3400 ahead of Canadian/US macro dataUSD/CAD bounces off daily low, finds support near 1.3400 ahead of Canadian/US macro data – by hareshmenghani USDCAD OPEC Coronavirus Fed Currencies
Weiterlesen »
USD/CAD: Scope for more significant losses is getting narrower – ScotiabankUSD/CAD steadies after retest of 1.35. Economists at Scotiabank note that the Canadian Dollar has struggled to advance against a soft greenback. Firm
Weiterlesen »