CANADIAN DOLLAR RECOVERS LOSSES, BOLSTERED BY REBOUNDING CRUDE OIL
- Canadian Dollar flows are resurfacing after Thursday’s nosedive, propped up by a reinvigorated oil bid.
- Canada economic data remains thin until Tuesday’s CPI print.
- US Dollar giving back yesterday’s gains after consumer sentiment miss.
The Canadian Dollar (CAD) is catching a mild recovery on Friday, paring back Thursday’s dip after broad-market risk sentiment soured. Investors dog-piled into the US Dollar (USD) after a US Consumer Price Index (CPI) inflation beat reignited fears of Federal Reserve (Fed) interest rates remaining higher for even longer than markets are currently hoping for.
Canada’s Crude Oil-linked Loonie is getting pushed higher after oil markets catch a firm bid on Friday, and Canadian Dollar traders will be looking to close out Friday’s market session in the green after setting a new low for the week yesterday.
Daily Digest Market Movers: Canadian Dollar in recovery mode as Crude Oil bounces
- Canadian Dollar rebounding on Friday, walking back Thursday’s losses.
- Investor sentiment is recovering after a sharp downturn yesterday.
- Crude Oil markets are back on the rise as Middle east geopolitical tensions take a bite.
- The US tightened loopholes on their sanctions against Russian oil, sending barrel prices higher.
- Crude Oil traders are worried that the Gaza Strip conflict escalation could spill over into more US fossil fuel sanctions on Iran.
- CAD traders will be looking ahead to Tuesday’s CPI reading.
- US Michigan Consumer Sentiment missed the mark on Friday, helping to edge the USD lower.
Technical Analysis: Canadian Dollar looking to regain ground, USD/CAD edging back to 1.3650
After knocking into 1.3700 and marking in a new low for the week, the USD/CAD is easing back into familiar territory, and intraday action sees the pair trading back beneath the 200-hour Simple Moving Average (SMA) with intraday technical support coming from the 50-hour SMA near 1.3640.
On the daily candlesticks, the USD/CAD is poised for a bearish extension back into the 50-day SMA near 1.3550, with long-term support coming from the 200-day SMA just north of 1.3450.
Despite recent strength on the part of the Canadian Dollar, the USD/CAD remains a well-bid pair, still up over 2% from September’s swing low into 1.3380
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