- WTI erases daily losses to turn positive above $74.
- US Dollar Index steadies below 95.
- USD/CAD looks to end the day in the positive territory.
The USD/CAD pair broke above the 1.32 mark in the early trading hours of the NA session and touched a new session top at 1.3225 as the upbeat PMI data from the United States help the greenback gather more strength against its rivals. As of writing, the pair was trading at 1.3215, adding 0.62% on the day.
Markit's final PMI report for June showed that the business activity in the manufacturing sector expanded at a faster pace than the report suggested in the previous estimate. Moreover, the ISM Manufacturing PMI improved to 60.2 in June from 58.7 in May to beat the experts' estimate of 58.1. Boosted by these data, the US Dollar Index continued to retrace last Friday's gains and rose to 94.88 before going into a consolidation phase. At the moment, the index is up 0.62% on the day at 94.80.
Meanwhile, after coming under a selling pressure in the early NA session, crude oil staged a modest recovery and allowed the commodity-loonie to limit its losses against peers. The barrel of West Texas Intermediate recently rose above the $74 mark and turned flat for the day.
Canadian markets are closed on Monday due to Canada Day holiday and Markit is going to release the manufacturing PMI data on Tuesday.
Technical levels to consider
On the upside, the initial resistance for the pair could be seen at 1.3225 (daily high) ahead of 1.3265 (Jun. 29 high) and 1.3350 (Jun. 28 high). On the downside, supports align at 1.3125 (Jun. 29 low), 1.3000 (psychological level/50-DMA) and 1.2920 (100-DMA).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD loses ground due to the absence of a hawkish RBA
The Australian Dollar has plunged following the Reserve Bank of Australia's decision to maintain its interest rate at 4.35% on Tuesday. Investors sentiment leaned toward a potentially more hawkish stance from the RBA, particularly after last week's inflation data surpassed expectations.
EUR/USD edges lower to near 1.0750 after hawkish remarks from a Fed official
EUR/USD extends its losses for the second successive session, trading around 1.0750 during the Asian session on Wednesday. The US Dollar gains ground due to the expectations of the Federal Reserve’s prolonging higher interest rates.
Gold price recovers its recent losses, despite a firmer US Dollar
Gold price attracts some buyers during the Asian trading hours on Wednesday. Safe-haven demand, fueled by geopolitical tensions and uncertainty, as well as ongoing central bank purchases, might contribute to a rally in gold.
Ethereum resume sideways move as Grayscale files to withdraw Ethereum futures ETF application with the SEC
Ethereum is hinting at a resumption of a sideways movement on Tuesday after seeing inflows for the first time in seven weeks. Grayscale withdrew its application for an Ethereum futures ETF, and the SEC’s Chair Gary Gensler has also called most crypto assets securities.
No obvious macro catalysts to steer the bus
The US data calendar remains relatively light, with initial jobless claims and the University of Michigan survey being the key focus. However, these releases may not provide a significant catalyst for the next directional move in the US Dollar.