Canadian Dollar consolidates around 1.3800 against USD as Mideast uncertainties persist
The USD/CAD pair extends its sideways consolidative price move for the second consecutive day and trades around the 1.3800 mark during the Asian session on Tuesday. Spot prices, however, remain close to the highest level since April 13, touched last week.
The US Dollar (USD) attracts fresh buyers following the previous day's fall to over a one-week low amid persistent geopolitical uncertainties and acts as a tailwind for the USD/CAD pair. The US and Iran remained at odds over key issues, including the Strait of Hormuz and Tehran's nuclear program, capping the optimism over a potential deal to end a nearly three-month-old war and benefiting the safe-haven buck.
In the latest development, Fox News reported that US forces conducted "self-defense strikes" in southern Iran on Monday. This keeps geopolitical risks in play, which, along with hawkish US Federal Reserve (Fed) expectations, offers some support to the Greenback. However, a modest recovery in Crude Oil prices underpins the commodity-linked Loonie and holds back bulls from placing fresh bets on the USD/CAD pair.
Hence, it will be prudent to wait for a sustained strength and acceptance above a technically significant 200-day Simple Moving Average (SMA) before traders start positioning for an extension of the recent move up from the monthly swing low. Moving ahead, Tuesday's release of the Conference Board's US Consumer Confidence Index might influence the USD price dynamics and provide some impetus to the USD/CAD pair.
The market focus, however, will remain glued to the US Personal Consumption Expenditure (PCE) Price Index and the second estimate of the US GDP growth, due for release on Thursday. Apart from this, fresh developments surrounding the Middle East crisis might continue to infuse volatility in the financial markets and contribute to producing some meaningful trading opportunities around the USD/CAD pair.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
A Major Reversal Amid the U.S. Bond Selloff! Bond Market Veteran Bianco Turns Bullish for the First Time in Six Years, Calling 5% Yield a "Value Buy Opportunity"
Currently, as benchmark U.S. Treasury yields surge to their highest levels in nearly two decades, bond market veteran Jim Bianco has loosened his bearish stance for the first time and is gradually building long positions as a "value buyer."
New Zealand Dollar steadies near its lows as RBNZ hike bets keep building
Overnight U.S. Stocks | All Three Major Indexes Fall, 10-Year Treasury Yield Hits Nearly 20-Year High, Oil Prices Volatile, Gold Drops Nearly 4%
At market close, the Dow Jones Industrial Average fell 347.11 points, or 0.67%, to 51,481.51 points; the S&P 500 Index dropped 59.72 points, or 0.77%, to 7,683.69 points; and the Nasdaq Composite Index declined 248.34 points, or 0.92%, to 26,820.38 points.
Trump Targets Key Midterm State Iowa: Announces $15 Billion Steel Plant Project to Create 8,000 Jobs
Trump stated that once completed, the factory will have an annual steel production capacity of 10 million tons, making it "the largest steel mill ever in the United States." White House officials noted that steel production could begin as early as 2030, with an estimated 8,000 jobs created. However, the economic benefits of the factory will not be realized before the November election this year. Iowa, as a key agricultural state, is currently facing dual pressures from high diesel prices and tariff disputes, making Trump’s political intentions evident with this move.
Crypto prices
More
