Market news
26.05.2023, 01:24

USD/CAD prods monthly top near 1.3650 amid sluggish Oil price, US Dollar retreat ahead of key data

  • USD/CAD seesaws at the highest level in a month amid three-day winning streak.
  • Risk-off mood weighs on Oil price, allows US Dollar to remain firmer despite latest pullback.
  • Upbeat US data, looming concerns about US default keeps Loonie traders on their toes.
  • US Durable Goods Orders, Fed’s preferred inflation gauge eyed for clear directions.

USD/CAD bulls take a breather after refreshing the monthly high, retreating to 1.3645 during the mid-Asian session on Friday. In doing so, the Loonie pair takes clues from the latest retreat in the US Dollar price while also justifying the downbeat Oil prices and sour sentiment.

While the US Dollar’s pullback could be linked to a cautious mood ahead of the key data, fears surrounding the US default and upbeat US Q1 GDP, as well as other activity numbers, keep the Loonie pair buyers hopeful. Additionally, mixed feeling about the Oil price adds trading filters to the USD/CAD price.

That said, the US Dollar Index (DXY) retreated from the highest levels since March 13 to 104.17 by the press time as traders await the US Durable Goods Orders for April and the Core Personal Consumption Expenditure (PCE) Price Index for the said month, known as the Fed’s preferred inflation gauge.

On Thursday, the second estimation of the US Annualized Gross Domestic Product (GDP) for Q1 2023 was revised up to 1.3% versus 1.0% first forecasts. Further, the Chicago Fed National Activity Index for April improved to 0.07 from -0.37 prior and -0.02 market estimations. On the same line, Kansad Fed Manufacturing Activity improved to -2 for May compared to -21 previous readings and analysts’ estimations of -11. It’s worth noting that the US Pending Home Sales for April improved on YoY but eased on MoM whereas Core Personal Consumption Expenditures also rose to 5.0% during the preliminary readings versus 4.9% prior.

However, hawkish Fed bets and the US debt ceiling expiration concerns allow the US Dollar to dominate. Recently, US House Speaker Kevin McCarthy announced no agreement on the debt deal, as well as the continuation of talks by saying, “It’s hard. But we’re working and we’re going to continue to work until we get this done.”

On the other hand, WTI crude oil remains indecisive around $71.85 as it struggles to cheer the US Dollar’s retreat amid hopes of witnessing the $80.00 price, suggested by Russian Deputy Prime Minister Alexander Novak on Thursday.

While portraying the mood, S&P500 Futures print mild losses while the Yields grind higher amid the market’s indecision, which in turn prod the USD/CAD bulls ahead of the key US data and looming debt payment default.

Technical analysis

USD/CAD bulls need validation from the previous monthly high of around 1.3665-70 to keep the reins. That said, the overbought RSI conditions suggest a pullback towards the previous resistance line stretched from March, around 1.3540 at the latest.


© 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.

AML Website Summary

Risk Disclosure

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.

Privacy Policy

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 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

Live Chat E-mail
Choose your language / location