- The dollar gains momentum in the European session and advances in the market.
- USD / CAD maintains a bearish bias but remains with support above 1.2600.
USD / CAD is trading in the zone of 1.2650, at the same level where it closed on Friday. The price bottomed out on Monday at the start of the European session in 1.2609, the lowest in nearly two weeks, and then bounced up to 1.2665.
LThe rise from levels close to the 1.2600 area in USD / CAD was driven by a generalized advance of the dollar in the market. The greenback is being favored by the continued advance of Treasury bond yields.
The 10-year rate on the US bond is approaching 1.50% and is at its highest since June; the five-year tranche has already exceeded the highs of the pandemic. These tours began after last week’s FOMC meeting and continued later. Comments from Powell and other officials reaffirmed the signs of an announcement to cut the purchasing program in November. Two Fed officials (Brainard and Williams) will speak on Monday who have not yet spoken.
The USD / CAD rebound has a limitation on the oil price rally. The WTI barrel rises 1.35% and is in the area of $ 75.00, the highest level since mid-July. In equity markets there are mixed results.
Technically, USD / CAD would be vulnerable to a bearish acceleration from losing the 1.2600 area; with the next support at 1.2580 and then 1.2550. In the opposite direction, at 1.2665 / 1.2670 is the first resistance band and then it will follow 1.2695 / 1.2700.
Technical levels
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