USD/CAD climbs above 1.33 as oil struggles to extend rally
|- Concerns over global economic slowdown weigh on commodities.
- IMF lowers 2019 world growth forecast on Monday.
- US Dollar Index advances toward mid-96s.
After closing the previous week modestly higher, the USD/CAD pair started the week on a strong footing and rose above the 1.33 mark as the commodity-sensitive loonie struggled to stay resilient against rival currencies amid the uninspiring price action seen in crude oil. As of writing, the pair was up 0.35% on the day at 1.3306.
The data from China today revealed that the annual expansion rate of the economy came in at its lowest level since 1990 at 6.4% to revive concerns over the potential negative impact of weak global demand on crude oil prices. Following the impressive rally witnessed in the second half of the last week, the barrel of West Texas Intermediate is having a difficult time pushing higher on Monday and was last seen trading near $54, where it was up only 15 cents on a daily basis.
Meanwhile, the greenback preserves its bullish momentum to start the week and provides an additional lift to the pair. After recording daily gains in the last four day, the US Dollar Index reached its highest level since January 4 at 96.43 today. Although there won't be any macroeconomic data releases from the U.S. due to Martin Luther King Jr. Day holiday, the USD could try to push higher if the developments in the U.K. continue to weigh on European currencies later in the day.
Technical levels to consider
With a daily close above 1.3300 (psychological level/daily high), the pair could target 1.3380 (50-DMA) and 1.3420 (Dec. 17, 2018, high). On the downside, supports are located at 1.3250 (daily low), 1.3180 (Jan. 9 low) and 1.3100 (psychological level).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.