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

USD/CAD

Overview
Today last price 1.3291
Today Daily Change 0.0068
Today Daily Change % 0.51
Today daily open 1.3223
 
Trends
Daily SMA20 1.3175
Daily SMA50 1.3186
Daily SMA100 1.3302
Daily SMA200 1.3311
Levels
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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD falls off the highs amid trade wars, weak German figures

EUR/USD is falling toward 1.1100. The German IFO Business Climate dropped to 94.3 points, below expectations. Markets are concerned by the intensifying US-Sino trade wars.

EUR/USD News

GBP/USD consolidates amid Brexit uncertainty

GBP/USD is trading below 1.2300, consolidating its gains. The UK and the EU have been blaming each other for a potential no-deal Brexit. US-Sino tensions are in play as well.

GBP/USD News

USD/JPY recovers farther from multi-year lows on Trump’s positive trade-related comments

The incoming positive trade-related comments dented the JPY’s safe-haven demand. Improving global risk sentiment helped the pair to recover around 150-pips intraday. Investors now look forward to the US durable goods orders data for a fresh impetus.

USD/JPY News

Gold retreats from multi-year tops, fills weekly bullish gap on positive trade headlines

Gold extended its intraday pullback from fresh multi-year tops and dropped to fresh session lows in the last hour, filling the weekly bullish gap. The US-China trade tensions escalated further.

Gold News

Forex Today: Trade wars paint markets in red, Brexit looks worse, and central banks are limited

Here is what you need to know on Monday, August 26th: The US-Sino trade war is painting global markets in the red. The US dollar is losing some ground to major currencies as yields plunge, while it gains against commodity currencies. Gold is rising and oil is falling.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •