Black Pipper

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USD/CAD struggling one way – sideways movement around 1.3300

The USD/CAD started slightly below 1.33 in the new trading week, and it has a hard time to take a short-term turn as oil prices rise, supporting commodity currencies like the loonie versus the greenback. Currently, the pair’s daily gain is 0.24% at 1.3313.

Waning fears over an escalation in the US-China trade war were accompanied by both sides declaring their interest in resuming trade talks. The WTI barrel lost -1.7% last week and most recently traded with a daily gain of 2.05% at $ 55.

The recovery in market sentiment was accompanied by a rise in US 10-year Treasury yields, and so the dollar index is recovering from last week’s losses. Currently the DXY daily gain is 0.73% at 97.97.

Data released by the US Census Bureau showed that durables durable goods orders rose 2.1% in July, up from 1.1%, while non-transport earnings fell -0.4%.

Today, we do not expect the economic calendar to contain any more important data, so greater price volatility is unlikely if there are no new headlines on the US-China trade war.

 

Technical Levels

S1 1.3259
S2 1.3237
S3 1.3196

R1 1.3321
R2 1.3362
R3 1.3384

 

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