USD/CAD pullback eyes 1.2700 on upbeat oil prices, US PCE Inflation in focus By anilpanchal7 USDCAD RiskAppetite Oil Inflation Fed
Oil prices stay firmer amid Russia-Ukraine tussles, USD pullback.USD/CAD fades bounce off intraday low during the first negative daily performance in three amid early Friday in Europe.
Alike other majors, the Loonie pair also adhered to the broad US dollar gains post-Fed during the last two days, refreshing the highest levels in three weeks. However, escalating tensions surrounding the Russia-Ukraine geopolitical tension propel prices of Canada’s main export item WTI crudeUS President Joe Biden talked with his Ukrainian counterpart Volodymyr Oleksandrovych Zelenskyy while showing readiness to offer more economic support.
Elsewhere, the US dollar eases from the highest levels last seen during July 2020 as traders await US Core PCE Price Index figures for December as they’re considered the Fed’s preferred version of inflation. Markets expect a 4.8% YoY figure versus 4.7% prior.On Thursday, the Advance Q4 US GDP, up 6.9% annualized versus 5.5% market consensus and 2.3% prior.
It’s worth noting that the mixed performance of the market, portrayed by steady yields and mildly bidLooking forward, headlines concerning the Russia-Ukraine tussles may offer immediate direction but major attention should be given to US PCE Price Index data.The USD/CAD pair’s successful trading above the 1.2695-2710 support zone, comprising 200-SMA and 50% Fibonacci retracement of December-January declines, keeps USD/CAD buyers hopeful amid bullish MACD signals.
On the flip side, short-term sellers will gain momentum on the break of 1.2695. However, an ascending support line from January 20, near 1.2595, will challenge the USD/CAD sellers afterward.