- Analytics
- News and Tools
- Market News
- USD/CAD crawls beyond 1.3550 on risk aversion and lower oil prices
USD/CAD crawls beyond 1.3550 on risk aversion and lower oil prices
- The Dollar extends gains favoured by risk aversion.
- Lower oil prices are weighing on the Canadian Dollar.
- USD/CAD’s corrective recovery, might find resistance at 1.3600 and 1.3620.
The US Dollar keeps a moderate bid tone on Tuesday’s European session and is putting a distance from the two-month highs, at the 1.3475 area hit on Monday.
The Greenback is drawing support from the risk-averse market sentiment. Investors are reluctant to place risky bets awaiting the release of US employment data to confirm that the Federal Reserve’s tightening cycle is over.
Lower oil prices are hurting the Canadian Dollar
Beyond that, the lower oil prices, with the IUS benchmark WTI hovering right above five-month lows, at $72.20 is acting as a headwind to the loonie.
In Canada, the BoC is widely expected to keep rates at the current 5% level and start rolling back the tightening cycle in early 2024.
From a technical perspective, the pair is correcting higher, after a 3% sell-off in November. The next resistances are likely to be at the 4h 50 SMA, at 1.3600 ahead of the November 30 high, 1.3622 and 1.3700.
Supports are 1.3520 and the December 4 low at 1.3475.
Technical levels to watch
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
