USD/CAD Edges Lower To Near 1.3650 Due To Improved Risk Appetite, Higher Oil Prices -

USD/CAD Edges Lower To Near 1.3650 Due To Improved Risk Appetite, Higher Oil Prices

Jun 06, 2024Jeremy ParkinsonFinance, No picture0

USD/CAD depreciates as mixed data from the US fuels speculations of a rate cut by the Fed.

CME FedWatch Tool suggests the probability of a Fed rate cut in September has increased to nearly 70.0%.

The appreciation of crude Oil prices supports the commodity-linked Canadian Dollar.

USD/CAD retreats after two days of gains, trading around 1.3680 during the Asian session on Thursday. The US Dollar (USD) struggled after mixed economic data was released in the United States (US), which fueled interest rate cut speculations by the US Federal Reserve (Fed). Investors are awaiting key US employment data releases on Friday, including Average Hourly Earnings and Nonfarm Payrolls.The investors’ sentiment of the Fed’s rate cut leads to the weakening of the US Treasury yields, undermining the US Dollar and USD/CAD pair. Investors await the key US employment data releases on Friday, including the Average Hourly Earnings and Nonfarm Payrolls.A Reuters poll conducted from May 31 to June 5 has indicated that nearly two-thirds of economists now predict an interest rate cut in September. As per the CME FedWatch Tool, the probability of a Fed rate cut in September by at least 25 basis points has increased to nearly 70.0%, up from 47.5% a week earlier.On the Loonie front, the upside of the crude Oil prices is supporting the demand of the Canadian Dollar (CAD), given the fact that Canada is the largest Oil exporter to the United States (US). West Texas Intermediate (WTI) Oil price extends its gains for the second session, trading around $74.30 per barrel, by the press time.In June, the Bank of Canada (BoC) carried out a widely anticipated 25 basis points reduction in its key interest rate, bringing it to 4.75%. This move marked a departure from 11 consecutive months of peak interest rates in the tightening cycle. The sustained disinflation trends in Canada toward the central bank’s target range of 1%-3% have supported a less stringent monetary policy stance. Traders are now shifting their focus to Friday’s upcoming Canadian labor figures.

USD/CAD

OVERVIEW Today last price 1.3679 Today Daily Change -0.0016 Today Daily Change % -0.12 Today daily open 1.3695

TRENDS Daily SMA20 1.3659 Daily SMA50 1.3666 Daily SMA100 1.3585 Daily SMA200 1.3577

LEVELS Previous Daily High 1.3742 Previous Daily Low 1.3666 Previous Weekly High 1.3735 Previous Weekly Low 1.3615 Previous Monthly High 1.3783 Previous Monthly Low 1.359 Daily Fibonacci 38.2% 1.3713 Daily Fibonacci 61.8% 1.3695 Daily Pivot Point S1 1.366 Daily Pivot Point S2 1.3624 Daily Pivot Point S3 1.3583 Daily Pivot Point R1 1.3736 Daily Pivot Point R2 1.3777 Daily Pivot Point R3 1.3812

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