USD/CAD advances to fresh weekly highs near 1.3170 as WTI pushes lower
- USD/CAD remains on track to post weekly gains.
- WTI falls for third straight day on Friday.
- US Dollar Index settles below 93.00 after mid-tier data.
After dropping toward 1.3100 during the European trading hours, the USD/CAD pair turned south in the second half of the day and climbed to a fresh weekly high of 1.3172. As of writing, the pair was up 0.17% on the day at 1.3162. On a weekly basis, USD/CAD remains on track to close more than 100 pips higher.
WTI extends slide into third consecutive day
The poor performance of crude oil seems to be making it difficult for the commodity-related loonie to stay resilient against its American counterpart in the second half of the week. Following the impressive rally seen at the start of the week, the barrel of West Texas Intermediate (WTI) remains on track to close the third straight week in the negative territory and was last seen losing 1.2% at $40.40.
On the other hand, the US Dollar Index (DXY) stays in the negative territory below 93.00 on Friday, keeping USD/CAD's upside limited for the time being. Although the DXY struggled to carry its bullish momentum into the second half of the week, it's still up around 0.6% for the week.
Earlier in the day, the data published by the US Bureau of Labor Statistics showed that the Core Producer Price Index (PPI) in October declined to 1.1% on a yearly basis. Additionally, the University of Michigan's Consumer Sentiment Index slumped to 77 in November and missed the market expectation of 82 by a wide margin. Nevertheless, the market reaction to these data was muted.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
