- The dollar gains momentum in the market on Friday and cuts losses.
- USD/CAD erases Thursday’s losses and recovers 1.3400.
The USD/CAD is rising on Friday, recovering after falling to a month and a half low. The pair is trading in the area of daily maximums at 1.3415, after having bottomed at 1.3320.
The daily rise exceeds 100 pips, and marks a rebound, but still insufficient to change the short-term bearish bias. The price is back in the previous range between 1.3450 and 1.3350. If it exceeds 1.3500, confirming with a daily close would be a bullish sign for the pair.
The rebound of the USD/CAD occurs before a strengthening of the dollar in the market. The greenback was under pressure on Thursday after the US inflation data. In the last few hours an upward movement began, accompanying a decline in the equity markets.
At the same time, Treasury yields are rebounding, although they remain closer to the recent bottom than the highs. This reflects expectations that the Federal Reserve will ease the pace of interest rate hikes.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
