USD/CAD advances toward 1.34 as WTI extends slide below $60
|- WTI continues to pull away from 2019 highs.
- US Dollar Index clings to gains above 96.50.
- Coming up: Retail sales and inflation data from Canada.
After spending the majority of the day in a tight range near 1.3350, the USD/CAD pair gained traction in the last couple of hours and rose toward the 1.34 handle. As of writing, the pair was trading at 1.3392, adding 0.25% on a daily basis.
Following the rally to the highest level since early November above $60, the barrel of West Texas Intermediate reversed its course yesterday and continues to push lower on Friday. At the moment, the WTI is down 0.56% on the day at $59.50. Although crude oil's price action seems to be a technical correction, it still hurts the demand for the commodity-sensitive loonie today.
Later in the session, inflation and retail sales data from Canada will be looked upon for fresh impetus. Previewing the data, "We expect core inflation to shift mildly lower in the coming months before slowly recovering toward 2% by year-end. The BoC remains in wait-and-see mode and will need to see an improvement in inflationary pressures before resuming tightening," Barclays analysts said.
On the other hand, the US Dollar Index is adding 0.35% on the day 96.67, preserving its recovery momentum following Wednesday's sharp FOMC-inspired drop. The U.S. economic docket will feature Markit Services and Manufacturing PMI, existing home sales, and wholesale inventories data.
Key technical levels
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