USD/CAD: USD/CAD fell below 1.2500 support level after mixed US consumer inflation data, without any follow-through selling. The pair struggled to keep its intraday gains, having shown the bearish dynamic near the 1.2550 level and went lower during the American session. This was the second day in a row of a negative move and was caused by a US dollar pullback following the release of mixed US consumer inflation data. The USD/CAD bears extended its sell-off slide while a fresh downtrend in crude oil prices supported them to limit any further losses. Oil prices fell rapidly after the US asked OPEC and its oil-producing partners to boost output.
GBP/USD: Cable trades near a daily high of 1.3870, as the market mood supported GBP bulls. The pair started the day declining, having reached 1.38 support. The pound weakened as the greenback showed growth on the back of US stimulus news. Demand for the Sterling fell after the Bank of England reported that it will start selling bonds purchased under its QE policy when it has raised interest rates to 1%, while the current interest rate is at a record low of 0.1%. Meanwhile, the UK macroeconomic calendar will not offer any important events this week. The Cayman indicator shows that neither bulls nor bears are outnumbered. The country will publish June Industrial Production and the preliminary estimate of second quarter GDP today.
WTI: WTI oil has moved into positive territory in the last two days. A combination of US political news at the start of the week has supported buyers and pushed oil prices higher that have otherwise been weakened by the negative implications for global demand due to the spread of the covid infections. Meanwhile, there’s more positive news for commodities from the White House. Biden administration said it would not call on US producers to increase crude output, and that efforts to increase OPEC production were a long term plan. Additionally, a government report showed that US crude supplies fell last week. EIA data showed crude oil stock fell last week, while gasoline inventories fell to their lowest level since last November.