USD/CAD Declined Below 1.3500 As WTI Oil Settled Above The $80 Level

Key Insights

• Canadian dollar gained strong upside momentum as the oil market rebound continued. 
• EUR/USD remains stuck in the 1.0600 – 1.0660 range. 
• GBP/USD rebounded towards 1.2050 after an unsuccessful attempt to settle below the 1.2000 level. 

U.S. Dollar Is Under Pressure

U.S. dollar is losing some ground against a broad basket of currencies after the release of the economic data from the U.S.

Case-Shiller Home Price Index report for October indicated that home prices declined by 0.8% on a month-over-month basis. Home prices are declining for the fourth month in a row as high interest rates put pressure on potential home buyers.

Meanwhile, Treasury yields continue to move higher. The yield of 10-year Treasuries is currently trying to settle above the 3.8% level. In case this attempt is successful, the yield of 10-year Treasuries will head towards the resistance at 3.90%, which should provide more support to the American currency.

EUR/USD Moved Towards The High End Of The Current Trading Range

EUR/USD  remains stuck in the 1.0600 – 1.0660 range. There are no important economic reports scheduled to be released in the Euro Area this week, so EUR/USD traders will stay focused on general market sentiment.

EUR/USD needs to get above the 1.0660 level to continue its strong rebound. European natural gas prices have recently dropped to new lows due to warm weather, which may provide more support to the European economy and the European currency.

GBP/USD Received Support Near 1.2000

GBP/USD has recently made an attempt to get below the 1.2000 level but lost momentum and rebounded towards 1.2050.

GBP/USD traders will also have to wait for the important reports until the next week. In case GBP/USD manages to settle below 1.2000, it will gain additional downside momentum and move towards the 1.1950 level.

USD/CAD Settled Below 1.3500

USD/CAD pulled back below the 1.3500 level as WTI oil settled above the $80 level. Oil markets are moving higher as traders worry that Russia’s oil exports will decline in January.

Other commodity-related currencies are also moving higher. AUD/USD managed to get above the 0.6750 level, while NZD/USD is testing the 0.6300 level.

USD/JPY Tested The 133.50 Level

USD/JPY continues to rebound after the strong sell-off. USD/JPY has already managed to settle back above the 133 level and made an attempt to climb above 133.50. The recent comments of BoJ’s Kuroda, who said that we was not ready to raise rates, put material pressure on the Japanese yen.

For a look at all of today’s economic events, check out our economic calendar.