Wednesday, March 29, 2023

USD/CAD maintains modest intraday recovery, lacks continuation above 1.3350

  • USD/CAD is recovering slightly from this Monday’s low in more than two months.
  • A soft tone around crude oil prices weighed on the CAD and acted as a tailwind for the pair.
  • The weakness of the USD prevents the bulls from opening aggressive positions and limits further gains of the pair.

couple usd/cad Near 1.3300 level attracted some buyers and is a good intraday bounce reached this Monday from a low of more than two months, The pair maintained the rally during the first half of the European session and is currently near the upper end of the daily range, just below the 1.3350 area.

Crude oil prices remained under pressure for the second consecutive day, which had an impact on CADA currency closely linked to commodity prices, and acts as a tailwind for the USD/CAD pair. Growth in crude exports from Russian Baltic ports in early February largely offset optimism about a recovery in demand from China, Furthermore, expectations that OPEC+ will keep production unchanged during a meeting this week will put pressure on black gold prices.

for his part, USD/CAD’s gains look limited amid underlying bearish sentiment around the US Dollar, The prospect of a less aggressive monetary policy tightening by the Fed kept USD bulls on the backfoot, nearing a nine-month low last week. Traders, however, appear to be reluctant, preferring to stay on the sidelines ahead of the expected FOMC monetary policy decision, which is to be announced at the end of the two-day meeting on Wednesday.

In the absence of market-relevant economic releases in both the US and Canada on Monday, the above fundamental background warrants caution before entering directional positions. However, the USD/CAD pair manages to stay above the 1.3300 level for now and remains at the mercy of the dynamics of the dollar and oil prices. Such an area could act as a key point which, if broken decisively, would pave the way for a short-term move lower.

USD/CAD Technical Level

Nation World News Desk
Nation World News Desk
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