USD/CAD rebounds above 1.3900 as WTI pulls away from nine-day highs
|- WTI retreats toward $17, clings to strong daily gains.
- US Dollar Index looks to close near 99.
- Canadian economy is expected to contract by 2.6% in Q1.
The USD/CAD pair dropped to its lowest level since mid-March at 1.3849 on Thursday but staged a decisive rebound during the American trading hours. As of writing, the pair was up 0.38% on the day at 1.3930 and was looking to snap its three-day losing streak.
Earlier in the day, the ongoing recovery in crude oil prices helped the CAD continue to gather strength against the greenback. The barrel of West Texas Intermediate (WTI) rose to a nine-day high of $18.57 before going into a consolidation phase. At the moment, the WTI is trading near $17, gaining 12% on the day.
USD ends April on a weak note
Meanwhile, the data published by Statistics Canada revealed that the Canadian economic activity was virtually unchanged on a monthly basis in February. Moreover, the flash estimate showed that the GDP is expected to decline by 2.6% in the first quarter.
Commenting on the market reaction, “unsurprisingly, the CAD ignored the data. With month-end dynamics the primary focus this week, a stale GDP report was never going to be that interesting to follow anyway,” TD Securities analysts said. On the same note, the pair's rebound picked up steam despite the broad USD weakness to reflect the impact of month-end flows and profit-taking on the pair.
The US Dollar Index, which tracks the USD's performance against a basket of six major currencies, fell below the 99 handle for the first time in more than two weeks on Thursday. Although the index recovered modestly in the last hour and steadied around 99.10, it's headed to post losses for the fifth straight day.
Technical levels to watch for
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.