USD/CAD rises above 1.33 as WTI's daily losses surpass 3%
|- WTI drops below $52 for the first time in 10 days.
- Negative market sentiment weighs on commodities on Thursday.
- US Dollar Index stays quiet around mid-96s.
The USD/CAD pair advanced to its highest level since January 25 at 1.3319 as the commodity-related loonie met a renewed selling pressure amid the sharp drop seen in crude oil prices. As of writing, the pair was up 0.7% on the day a little below 1.3300.
Resurfacing concerns over the slowdown in the global economic growth today weighed on the market sentiment and hurt the demand for risk-sensitive commodities. Additionally, reports of U.S. President Trump not planning to meet his Chinese counterpart Xi before the March deadline reminded investors of the potential negative impact of the U.S. - China trade conflict on the oil demand outlook. At the moment, the barrel of West Texas Intermediate is losing nearly 3% on the day at $52.25.
Meanwhile, the dominating risk-off mood ramped up the demand for safe US Treasury Bonds and drove their yields lower to pull the US Dollar Index away from its daily highs, which keeps the pair's gains capped for the moment. Nevertheless, the DXY remains on track to close the day modestly higher near 96.50.
On Friday, Statistics Canada will publish the employment data. Previewing the event, "We also look for a recovery in private sector job growth following last month's rotation into self-employment. Job growth of 15k should leave the unemployment rate unchanged at the current cycle low of 5.6% while wage growth should firm modestly to 1.7% y/y, still well below levels associated with a tight labour market,” said TD Securities analysts in a recently published report.
Key technical levels
USD/CAD
Overview:
Today Last Price: 1.3296
Today Daily change %: 0.70%
Today Daily Open: 1.3204
Trends:
Daily SMA20: 1.324
Daily SMA50: 1.3367
Daily SMA100: 1.3223
Daily SMA200: 1.3133
Levels:
Previous Daily High: 1.321
Previous Daily Low: 1.3124
Previous Weekly High: 1.3287
Previous Weekly Low: 1.3069
Previous Monthly High: 1.3664
Previous Monthly Low: 1.3118
Daily Fibonacci 38.2%: 1.3177
Daily Fibonacci 61.8%: 1.3157
Daily Pivot Point S1: 1.3149
Daily Pivot Point S2: 1.3094
Daily Pivot Point S3: 1.3064
Daily Pivot Point R1: 1.3234
Daily Pivot Point R2: 1.3264
Daily Pivot Point R3: 1.3319
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