USD/CAD climbs to daily highs near 1.3440 as WTI slumps to $59
|- Crude oil comes under pressure after EIA report.
- Trade deficit narrows both in the U.S. and Canada in January.
- US Dollar Index approaches 97 in the NA session.
The USD/CAD pair extended its daily gains above the 1.34 mark in the last hour and touched a fresh session high of 1.3441 as the commodity-sensitive loonie weakened against its rivals amid falling crude oil prices. As of writing, the pair was trading at 1.3435, adding 0.4% on a daily basis.
The weekly report published by the EIA today revealed that crude oil stocks in the U.S. increased by 2.8 million barrels and weighed on the price of the West Texas Intermediate, which was last seen losing 1.4% on the day at $59.15. Earlier in the day, Statistics Canada reported that international trade deficit edged down to $4.25 billion in January but missed the market estimate of $3.5 billion.
On the other hand, the greenback seems to be taking advantage of the sour market mood with the US Dollar Index building on yesterday's recovery gains. At the moment, the DXY is up 0.15% on the day at 96.94. Today's data from the U.S. showed that the trade deficit at $51.1 billion in January came in better than the analysts' estimate of $57 billion.
GDP growth data from the U.S. and Canada, on Thursday and Friday respectively, will be watched closely by market participants ahead of the weekend. Previewing Canadian data, "We expect GDP to have shrink 0.1% in the month," said NBF analysts.
Technical levels to consider
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.