The U.S. dollar is recovering against the Canadian currency on Thursday. The USD/CAD Forex market is inching higher and now trading above 1.2650 and above the 50, 100 and 200 day simple moving averages.
With a fairly quiet economic calendar on Thursday, geopolitical headlines will play a role in currency volatility. This includes the U.S. dollar. Afghanistan is the main source of interest for the financial markets.
U.S. Secretary of State Antony Blinken is set to testify before Congressional lawmakers regarding the chaotic withdrawal of American forces seen this week and the Taliban seizing power.
The United Kingdom and Canada have no economic data releases scheduled for today. The United Department of Labor is publishing labor numbers. This includes weekly initial and continuing jobless claims. The Philadelphia Federal Reserve will release their monthly manufacturing index. The Consumer Board (CB) is publishing their monthly leading index.
The euro area will publish their current account and the United Kingdom has nothing on their economic calendar on Thursday. Overnight during the previous trading session, Canada’s consumer price index (CPI) for July rose 0.1 percent in June to 0.6 percent. This sent the USD/CD Forex market lower to 1.26 before finding support and rising.
The annual Canadian consumer price index for July surged to 3.3 percent. This was above the June’s gain of 2.7 percent. This could more pressure on the Bank of Canada to reduce monthly asset purchases. This supported the Canadian dollar.
Daily US Dollar Technical Analysis (USD/CAD)
Looking at the above daily MT 4 price action chart, the USD/CAD currency exchange rate has hit a intra-day high price point, during the Asian trade session, of 1.2652. This could open the door to challenge 1.28.
The first upside barrier lines up at 1.27 with the 21 July high price point of 1.2730 then coming into focus. The key psychological level of 1.28 then comes into focus.
On the downside, the 200 day simple moving average lines up near 1.2557. The 50 day simple moving average comes into play at 1.2455 and the 100 day simple moving average is at 1.2368.