USD/CAD climbs higher toward 1.33 on falling crude oil prices

  • WTI erases large part of Tuesday's gains, drops below $56.
  • US Dollar Index struggles to gain traction after US yield curve inversion.
  • Coming up: Import and Export Price Index from US and EIA's crude oil stock report.

The USD/CAD pair closed the first couple of days of the week little changed near the 1.32 mark but gained traction in the last hour to touch its highest level in six days as the commodity-related Loonie struggles to find demand amid falling crude oil prices. As of writing, the pair was up 0.55% on the day at 1.3293.

Crude oil weakens on flight-to-safety

For the first time since 2007, the US 1year and the 2-year yield curves inverted, triggering a fresh flight-to-safety and revived concerns over the US economy going into a recession. The dismal market mood following this development weighed on crude oil prices with the barrel of West Texas Intermediate dropping to a daily low of $55.55. As of writing, the WTI was down 1.83% on the day at $55.65.

Later in the day, the Energy Information Administration's weekly crude oil stock data will be looked upon for fresh impetus. Markets expect to see a decline of 2.7 million barrels in the week ending August 9.

On the other hand, the US Dollar Index stays relatively quiet despite the sharp fall witnessed in the US Treasury bond yields and is now posting small daily losses at 97.70. In the second half of the day, the Import Price Index and the Export Price Index data from the US will be released but are likely to be ignored by the participants. Crude oil prices and the risk perception could continue to impact the pair's action.

Technical levels to watch for


Today last price 1.3291
Today Daily Change 0.0068
Today Daily Change % 0.51
Today daily open 1.3223
Daily SMA20 1.3175
Daily SMA50 1.3186
Daily SMA100 1.3302
Daily SMA200 1.3311
Previous Daily High 1.3294
Previous Daily Low 1.3184
Previous Weekly High 1.3345
Previous Weekly Low 1.3178
Previous Monthly High 1.3215
Previous Monthly Low 1.3016
Daily Fibonacci 38.2% 1.3227
Daily Fibonacci 61.8% 1.3252
Daily Pivot Point S1 1.3174
Daily Pivot Point S2 1.3124
Daily Pivot Point S3 1.3064
Daily Pivot Point R1 1.3284
Daily Pivot Point R2 1.3344
Daily Pivot Point R3 1.3394



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.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD extends gains toward 1.31 after upbeat UK wage figures

GBP/USD is extending its gains and advancing toward 1.31 after UK wage figures beat expectations with 3.2% annually. The unemployment rate remained at 3.8% in November. 


EUR/USD recaptures 1.11 amid upbeat German figures, USD weakness

EUR/USD is trading above 1.11 after the German ZEW Economic Sentiment beat with 26.7 points. Presidents Trump and Macron agreed not to slap tariffs on each others' countries. The US dollar is retreating.


Market delays the trip to the moon

The crypto markets continue to turn to a new bullish phase. This turnaround began at the beginning of the year after a consolidation phase that started in mid-2019. 

Read more

Gold retreats from 2-week tops, drifts into negative territory

Gold failed to capitalize on its early uptick to near two-week tops and dropped to fresh session lows, around the $1560 region in the last hour.

Gold News

USD/JPY: Weaker near 110.00 amid China virus fears, BOJ's status-quo

The Japanese yen retains the bid tone following the Bank of Japan's (BOJ) status-quo, keeping USD/JPY under pressure near the 110 level amid risk-off market profile. S&P 500 futures drop 0.40% while the US Treasury yields are down over 1.50%, as the sentiment is hit by the coronavirus outbreak.