USD/CAD trades above 1.3250, looks to close higher for second straight day
|- Crude oil rally loses steam on Friday.
- US Dollar Index pares early losses, looks to close the week near mid-95s.
- Annual core CPI remains steady at 2.2% in December in the U.S.
The USD/CAD pair extended its recovery into a second day on Friday and advanced to a three-day high of 1.3276. As of writing, the pair was moving sideways near 1.3260, adding 0.17% on a daily basis.
The commodity-sensitive loonie today came under a modest pressure as crude oil struggled to push higher with the barrel of West Texas Intermediate dropping back below the $52 mark and losing more than 1% on a daily basis.
On the other hand, after finding support near the 95 handle earlier this week, the US Dollar Index stayed in its range and now looks to close the day with small gains a little above the 95.50 mark. Earlier today, the monthly report published by the U.S. Bureau of Labor Statistics revealed that the CPI declines 0.1% on a monthly basis in December after staying unchanged in November. The core CPIi which excludes food and energy prices, rose 0.2% and 2.2% on a monthly and yearly basis, respectively, to come in line with experts' forecasts.
Earlier this week, the BoC recognized the negative impact of low energy prices on the Canadian economy and adopted a cautious tone regarding further rate hikes to put some extra weigh on the CAD's shoulders.
Technical levels to watch for
The pair could face the first resistance at 1.3275 (daily high) ahead of 1.3370 (50-DMA) and 1.3420 (Dec. 17 high). On the downside, supports are located at 1.3200 (psychological level), 1.3160 (Dec. 4 low) and 1.3125 (Nov. 16 low).
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.