- Volatile session in all financial markets after the ECB meeting.
- The dollar has no clear direction, US yields fall.
- USD/CAD maintains weekly losses as recovery fades above 1.2900.
The USD/CAD reversed and fell below 1.2900 in a volatile session for financial markets after the European Central Bank meeting and US data.
The pair peaked at 1.2935 and then pulled back. It is hovering around 1.2880, unchanged on the day and approaching the weekly low, near the strong support area of ​​1.2850.
The rejection above 1.2900/05 (horizontal levels and 20 and 200 SMAs on the 4 hour chart) reinforced the short-term bearish bias. If the USD/CAD consolidates above this zone, it will point to further gains.
USD/CAD 4-hour chart
Data, ECB and uncertainty
Stock markets are posting modest losses, but the dollar is not benefiting as US yields are falling sharply. The US 10-year yield stands at 2.92%, the lowest level since Monday, and the 30-year yield stands at 3.06%. Oil prices fall more than 3%.
US economic data weighed on the dollar on Thursday. Initial jobless claims rose more than expected to reach the highest level in eight months, while continuing claims also rose above expectations to reach the highest level in eleven weeks. The Philadelphia Fed fell unexpectedly. On Friday, Canadian retail sales for May will be released and the flash S&P Global PMI for July will be released in the US.
Technical levels
Source: Fx Street
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