- USD/CAD snaps a two-day downtrend as USD attempts a bounce.
- Risk-off mood extends into Europe amid renewed China Evergrande fears.
- WTI retreats from seven-year tops, undermines CAD, supporting the pair.
USD/CAD is staging a decent comeback from four-month lows of 1.2289, heading towards 1.2350, in response to a broad-based rebound in the US dollar.
The greenback is finding its feet against its major rivals, bouncing from three-week lows, as the risk appetite takes a hit amid the re-emergence of China Evergrande default fears after the indebted property development giant failed to clinch a property sale deal with Hopson Development Holdings.
Further, global energy crunch combined with rising inflationary pressures continues to sap investors’ confidence, putting a floor under the greenback’s recent corrective decline.
On the other hand, the risk-off market profile is weighing negatively on the higher-yielding WTI, as it retreats from fresh seven-week highs of $83.71, currently down 0.70% at $82.80. The pullback in oil prices is weighing on the resource-linked loonie, aiding the recovery in the currency pair.
Despite the rebound, risks remain skewed to the downside for USD/CAD, as hotter Canadian inflation data fans sooner-than-expected rate hike bets from the Bank of Canada (BOC). The country’s annual Consumer Price Index (CPI) rose by 4.4% in September vs. 4.3% expected.
Next of relevance for the major remains the US weekly Jobless Claims data and Fedspeak while the sentiment on the Wall Street will be closely followed amid the Q3 earnings season.
USD/CAD: Technical levels to watch out
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.