U.S. dollar gives up earlier gains, Oil prices drop

GBP/USD: Sterling held its ground against the dollar on Wednesday as traders assumed a rise in inflation in March would have little impact on monetary policy and waited for crucial activity and retail sales data due at the end of the week. Consumer price inflation rose to 0.7% in March after dipping to just 0.4% in February, as global oil prices rose and retailers scaled back their COVID-driven discounts. Immediate resistance can be seen at 1.3988. A breakout to the upside can trigger growth towards 1.4073.


BUY STOP 1.3988/TP 1.4073/SL 1.3954

 

USD/CAD: The Canadian dollar rose sharply on Wednesday to hit a one-month high against its U.S. counterpart as domestic data showed higher underlying inflation, and the Bank of Canada signaled it could hike interest rates as soon as next year. Canada’s central bank kept its key interest rate on hold at a record low of 0.25% but sharply raised its outlook for the economy, saying it now expects slack to be absorbed in the second half of 2022, increasing the likelihood of a hike in borrowing costs next year. The Canadian dollar was trading 1% higher at 1.2480 against the greenback, its biggest advance since June last year. On the downside, immediate support is seen at 1.2430. A breakout below could take the pair towards 1.2358.


SELL 1.2430/TP 1.2358/SL 1.2457

 

WTI: Oil prices fell for a third day on Thursday as a surprise build in U.S. crude inventories and a resurgence of COVID-19 cases in India and Japan raised concerns that global economic recovery and fuel demand may slow.

On Wednesday, India, the world’s third-largest oil user, reported another record increase in its daily death toll from COVID-19. Japan, the world’s #4 oil importer, is considering a state of emergency for Tokyo and Osaka as new COVID-19 case numbers surgenew COVID-19 case, broadcaster NHK reported. Libya’s National Oil Corp (NOC) declared force majeure on Monday on exports from the port of Hariga and said it could extend the measure to other facilities due to a budget dispute with the country’s central bank.


SELL 60.45/TP 58.75/SL 61.10

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