USD/CAD Continues Its Winning Streak On Lower Crude Oil Prices, Improves To Near 1.3580

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  • USD/CAD extends its gains as Crude oil prices encounter challenges.
  • Crude oil prices face challenges on higher API Weekly Crude Oil Stock.
  • US Dollar received upward support on the expectation of the Fed’s delaying rate cuts.
  • US GDP Annualized (Q4) rose by 3.2% against the expected 3.3%.

USD/CAD continues its winning streak, marking the fifth consecutive session with gains, as it edges higher around 1.3580 during the Asian session on Thursday. The Canadian Dollar (CAD) faced downward pressure against the US Dollar (USD) due to the lower Crude oil prices, thereby providing support to the USD/CAD pair. Furthermore, Canada’s Gross Domestic Product data will be closely monitored later in the North American session.

West Texas Intermediate (WTI) oil price struggles to recover from intraday losses and trades higher near $78.10 per barrel at the time of writing. However, Crude oil prices encountered challenges as expectations for the Federal Reserve (Fed) to delay the first-rate cuts emerged. Additionally, the higher API Weekly Crude Oil Stock added to the downward pressure on oil prices.

In December 2023, Canada’s average weekly earnings of non-farm payroll employees increased by 3.8% YoY, showing a slight deceleration from the revised 3.9% growth recorded in November 2023. Additionally, the country's Current Account deficit narrowed to CAD 1.62 billion in the fourth quarter of 2023, against the previous reading of CAD 4.74 billion but it was slightly above market expectations of a CAD 1.25 billion deficit.

The recent Gross Domestic Product (GDP) data from the United States (US) has prompted financial markets to postpone expectations for the Federal Reserve’s (Fed) first rate cut. This has lent some support to the US Dollar (USD), bolstering the USD/CAD pair.

The preliminary US Gross Domestic Product Annualized expanded by 3.2% in the fourth quarter of 2023, slightly below market expectations of remaining steady at 3.3%. Additionally, the preliminary US Gross Domestic Product Price Index (Q4) increased by 1.7%, surpassing both expected and previous rises of 1.5%.

The US Dollar Index (DXY) maintains stability amid higher US Treasury yields. Furthermore, US Federal Reserve speakers have expressed a cautious stance, indicating potential rate cuts later in the year. This has led to a diminished likelihood of rate cuts in upcoming meetings, providing upward support for the Greenback. Traders await the release of key US Personal Consumption Expenditures - Price Index data, which could potentially influence the Federal Reserve's monetary policy stance.


USD/CAD

OVERVIEW
Today last price 1.3574
Today Daily Change 0.0001
Today Daily Change % 0.01
Today daily open 1.3573

 

TRENDS
Daily SMA20 1.3494
Daily SMA50 1.3424
Daily SMA100 1.3541
Daily SMA200 1.3478

 

LEVELS
Previous Daily High 1.3606
Previous Daily Low 1.3525
Previous Weekly High 1.3536
Previous Weekly Low 1.3441
Previous Monthly High 1.3542
Previous Monthly Low 1.3229
Daily Fibonacci 38.2% 1.3575
Daily Fibonacci 61.8% 1.3556
Daily Pivot Point S1 1.353
Daily Pivot Point S2 1.3486
Daily Pivot Point S3 1.3448
Daily Pivot Point R1 1.3612
Daily Pivot Point R2 1.365
Daily Pivot Point R3 1.3693

More By FX Street:

USD/JPY Price Analysis: Stays Firm Near YTD High Amid U.S. Data, Intervention Fears
US Q4 GDP Growth Revised Lower To 3.2% From 3.3%
Silver Price Analysis: Silver Seems Vulnerable Near $22.30, Two-week Low

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