USD/CAD struggles around the 1.2300 level amid various factors. The role of the USD as a safe haven is questioned despite a rate hike expectation. Canadian dollar benefited from the better-than-expected CPI data and may keep pressure over the USD. On Wednesday, the USD/CAD price analysis struggled to benefit from the modest rebound from the previous day but instead encountered fresh supply and came under pressure from various factors. -If you are interested in forex demo accounts, check our detailed guide- Despite moderate expectations of a Fed rate hike, the risk sentiment has become an obstacle to the US dollar’s role as a safe haven. This week, several dismal US macro releases – industrial production and housing market data – indicated a slowdown in economic activity and dampened market expectations of an early Fed tightening. Additionally, Fed chair Randal Quarles said a rate hike would be premature because inflation will likely fall over the next year. Nonetheless, Quarles reiterated that the Fed should cut its bond-buying program, even though the dollar bulls failed to impress. In contrast, the Canadian dollar benefited from unexpectedly high domestic consumer inflation, increasing pressure on the largest currency. According to Statistics Canada, the general consumer price index rose 4.4% in September, up from previous projections of 4.3% and 4.3%. Furthermore, the Bank of Canada’s Core Consumer Price Index (BoC) – which excludes volatile food and energy prices – rose 3.7% over the same period, beating the consensus of 3.6%. Bullish oil prices also helped commodities, as US crude oil inventories declined unexpectedly. In a report released by the US Energy Information Administration (EIA), commercial crude inventories declined by 0.4 million barrels for the week ending October 15, against expectations for an increase of 1.8 million barrels. Despite receiving no further selling, the pair eventually settled near the daily lows and briefly dropped below 1.2300 during Thursday’s Asian session. Investors’ appetites for riskier assets have been dampened by the credit crunch in China’s real estate market, which has bolstered the safe US dollar. Get FREE Forex Signals Now! The heavily indebted developer China Evergrande said late Wednesday that it had sold its stake in the subsidiary for $2.6 billion and made no other progress on sales. As a result, there are fears that the troubled real estate giant may officially default over the weekend after a 30-day grace period for a coupon payment in US dollars. Furthermore, a slight decline in oil prices caused the pair to rebound more than 40 pips from the 1.2290-85 range. In addition to the Philadelphia Fed Manufacturing Index and the usual weekly jobless claims report, market participants eagerly await the report on the US economy. Additionally, the Fed’s Chris Waller’s upcoming speech and US bond yields could impact the dollar in North America later in the morning. Finally, ADP employment data and a move in oil prices will allow traders to take advantage of some near-term opportunities around the major currencies. -If you are interested in Islamic forex brokers, check our detailed guide- USD/CAD price technical analysis: Upside barred by 20-SMA The USD/CAD managed to pop up above the 1.2300 mark after a brief dip. However, the price remains softer as the bullish attempts remain capped by the 20-period SMA on the 4-hour chart. Any move beyond the 20-period SMA can look to test the 50-period SMA around 1.2400 handle. On the flip side, 1.2290 may provide support ahead of 1.2220. Volume is not in favor of bulls now, but bears have taken a pause for now. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next Free Forex Signals and Forecast: Buy GBP/USD – 21 Oct 2021 Olimpiu Tuns 1 month USD/CAD struggles around the 1.2300 level amid various factors. The role of the USD as a safe haven is questioned despite a rate hike expectation. Canadian dollar benefited from the better-than-expected CPI data and may keep pressure over the USD. On Wednesday, the USD/CAD price analysis struggled to benefit from the modest rebound from the previous day but instead encountered fresh supply and came under pressure from various factors. -If you are interested in forex demo accounts, check our detailed guide- Despite moderate expectations of a Fed rate hike, the risk sentiment has become an obstacle to the US dollar's… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.