USD/CAD Pulls Back As WTI Oil Rebounds

Key Insights

• The continuation of WTI oil’s rebound provided material support to the Canadian dollar and other commodity-related currencies. 
• EUR/USD managed to settle above the 1.0250 level. 
• USD/JPY found itself under pressure after the strong rally. 

U.S. Dollar Pulls Back After Yesterday’s Rally

The U.S. Dollar Index is trying to settle below the 107.50 level as traders take some profits off the table after yesterday’s rally.

Treasury yields are moving lower, and the yield of 10-year Treasuries has recently managed to settle back below the 50 EMA at 3.80%.

If the yield of 10-year Treasuries declines below 3.75%, it will head towards the support level at 3.67%, which will be bearish for the American currency.

EUR/USD Gains Ground As Euro Area Consumer Confidence Exceeds Expectations

EUR/USD settled above the 1.0250 level and is trying to develop additional upside momentum after the release of the Euro Area Consumer Confidence report.

The report indicated that Consumer Confidence improved from -27.6 in October to -23.9 in November, compared to analyst consensus of -26.

While Consumer Confidence remains at low levels, the better-than-expected report may provide some support to the European currency.

GBP/USD Moves Towards The 1.1900 Level

GBP/USD has recently made an attempt to settle above the 1.1900 level as traders rushed to buy the pound after yesterday’s pullback.

If GBP/USD manages to settle above 1.1900, it will head towards the next resistance level, which is located near the recent highs at 1.1950. A successful test of this level will open the way to the test of the resistance at 1.2000.

On the support side, the nearest support level for GBP/USD is located at 1.1855. In case GBP/USD declines below this level, it will head towards the next support level at 1.1830. A move below 1.1830 will push GBP/USD towards the support at 1.1790.

USD/CAD Retreats As Oil Markets Continue To Rebound

USD/CAD declined below the 1.3400 level as WTI oil continued to rebound after yesterday’s sell-off, which was caused by reports about a potential production increase from Saudi Arabia. These reports were refuted by Saudi Energy Minister Prince Abdulaziz bin Salman.

Today, USD/CAD traders also focused on the economic data from Canada. Retail Sales declined by 0.5% month-over-month in September, while Wholesale Sales increased by 1.3% in October. New Housing Price Index declined by 0.2% month-over-month in October.

Other commodity-related currencies have also moved higher today. NZD/USD rebounded towards the 0.6150 level, while AUD/USD settled back above 0.6620.

USD/JPY Declined Below 141.50

USD/JPY faced resistance near 142.25 and pulled back below the 141.50 level. There were no important economic reports in Japan today, and it looks that profit-taking was the main driver behind the strong pullback.

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