USD/CAD advances to weekly highs above 1.2100 in early American session
- USD/CAD is edging higher in early American session.
- US Dollar Index recovers toward 90.00 on Wednesday.
- Falling crude oil prices weigh on commodity-sensitive loonie.
After spending the majority of the day fluctuating in a tight range below 1.2100, the USD/CAD pair gained traction in the early American session and touched a fresh weekly high of 1.2121. As of writing, the pair was up 0.45% on the day at 1.2115.
WTI edges lower on Wednesday
Renewed selling pressure surrounding crude oil prices and the modest recovery seen in the greenback seems to be helping USD/CAD push higher. Currently, the barrel of West Texas Intermediate (WTI) is losing nearly 1% on the day at $65,40 and investors are waiting for the US Energy Information Administration's (EIA) weekly Crude Oil Stocks Change data.
On the other hand, the US Dollar Index (DXY), which closed the previous two days in the negative territory and lost around 0.4% during that period, is up 0.25% at 89.90.
There won't be any significant macroeconomic data releases featured in the US or the Canadian economic docket in the remainder of the day and investors will keep a close eye on oil's performance.
In the meantime, the S&P Futures and the Nasdaq Futures are up 0.2% and 0.25%, suggesting that Wall Street's main indexes are likely to open modestly higher. In case risk flows start to dominate the markets in the second half of the day, the DXY's upside could remain limited.
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.
