USD/CAD climbs higher toward 1.34 on broad USD strength
- Retail sales and industrial production increases in the U.S. in May.
- US Dollar Index climbs to 10-day highs above 97.30.
- WTI gains traction ahead of Baker Hughes' weekly oil rig count.
After spending the first half of the day moving sideways near 1.3320, the USD/CAD pair gained traction in the American trading hours and rose to its highest level in a week at 1.3385. As of writing, the pair was trading at 1.3370, adding 0.32% on a daily basis.
Today's data from the U.S. showed that retail sales increased by 0.5% on a monthly basis in May while industrial production expanded by 0.4% in the same period following April's contraction of 0.4%. The US Dollar Index extended its daily rally as the upbeat data hinted that the Fed might refrain from signalling a rate cut in next week's meeting. At the moment, the US Dollar Index is adding 0.38% on a daily basis at 97.40.
Although the University of Michigan in its latest report revealed that the Consumer Confidence Index in June dropped to 97.9 from 100 in May, the greenback didn't have a difficult time preserving its strength.
On the other hand, supported by concerns over supply disruptions in the Middle-East, the barrel of West Texas Intermediate continues to push higher and gaining more than 1% to help the commodity-related loonie limit its losses for the time being.
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.
