USD/CAD drops back closer to over one-month low, below mid-1.2600s ahead of BoC/US data NEWS | 6/1/2022 10:06:33 AM GMT | By Haresh Menghani Share on Twitter Share on Facebook Share on Linkedin Join Telegram USD/CAD continued with its struggle to capitalize on modest intraday recovery gains. An uptick in oil prices underpinned the loonie and acted as a headwind for the major. The downside seems cushioned amid sustained USD buying and ahead of the BoC. The USD/CAD pair surrendered modest intraday gains and slipped below mid-1.2600s during the first half of the European session, back closer to over a one-month low touched the previous day. Crude oil prices edged higher on Wednesday and reversed a major part of the overnight retracement slide from a near three-month high amid worries over a tighter global supply. European Union leaders agreed to a partial and phased ban on oil imports from Russia. Apart from this, expectations of demand recovery in China acted as a tailwind for the black liquid. This, in turn, undermined the commodity-linked loonie and capped the USD/CAD pair's attempted recovery move. On the other hand, a generally positive risk tone forced the safe-haven US dollar to trim a part of its strong intraday gains. This was seen as another factor that attracted some intraday selling around the USD/CAD pair. That said, rising US Treasury bond yields should help limit the downside for the buck and lend support to the major. Investors might also refrain from placing aggressive bets and prefer to wait on the sidelines ahead of the Bank of Canada monetary policy decision. The Canadian central bank is widely expected to hike interest rates by another 50 bps. Hence, the focus would remain on the accompanying monetary policy statement. Traders will further take cues from the US economic docket, featuring the release of ISM Manufacturing PMI and JOLTS Job Openings later during the early North American session. This, along with the US bond yields and the market risk sentiment, will influence the USD and provide some meaningful impetus to the USD/CAD pair. Technical levels to watch USD/CAD OVERVIEW Today last price 1.2641 Today Daily Change -0.0005 Today Daily Change % -0.04 Today daily open 1.2646 TRENDS Daily SMA20 1.2844 Daily SMA50 1.271 Daily SMA100 1.2697 Daily SMA200 1.2663 LEVELS Previous Daily High 1.2687 Previous Daily Low 1.2629 Previous Weekly High 1.2885 Previous Weekly Low 1.2718 Previous Monthly High 1.3077 Previous Monthly Low 1.2629 Daily Fibonacci 38.2% 1.2651 Daily Fibonacci 61.8% 1.2665 Daily Pivot Point S1 1.2622 Daily Pivot Point S2 1.2597 Daily Pivot Point S3 1.2564 Daily Pivot Point R1 1.2679 Daily Pivot Point R2 1.2712 Daily Pivot Point R3 1.2737 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. 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NVDA Stock News: Nvidia dips lower over report of Qualcomm investing in Arm NIO Stock Forecast: Nio Inc jumps higher as Shanghai reopens from COVID-19 lockdowns AMC Stock News: AMC Entertainment closes lower as Top Gun momentum fades United States MBA Mortgage Applications dipped from previous -1.2% to -2.3% in May 27 USD/CAD drops back closer to over one-month low, below mid-1.2600s ahead of BoC/US data China: Firm PMIs show the recovery is on the way – UOB EUR/USD looks offered but holds on above 1.0700, focus on Lagarde GBP/USD remains depressed below 1.2600 mark, seems vulnerable to slide further Euro area Unemployment Rate stays unchanged at 6.8% in April vs. 6.7% expected

 

• USD/CAD continued with its struggle to capitalize on modest intraday recovery gains.
• An uptick in oil prices underpinned the loonie and acted as a headwind for the major.
• The downside seems cushioned amid sustained USD buying and ahead of the BoC.

The USD/CAD pair surrendered modest intraday gains and slipped below mid-1.2600s during the first half of the European session, back closer to over a one-month low touched the previous day.

Crude oil prices edged higher on Wednesday and reversed a major part of the overnight retracement slide from a near three-month high amid worries over a tighter global supply. European Union leaders agreed to a partial and phased ban on oil imports from Russia. Apart from this, expectations of demand recovery in China acted as a tailwind for the black liquid. This, in turn, undermined the commodity-l