USD/CAD climbs to daily highs above 1.3180 on oil sell-off

Crude oil sell-off intensifies in last hour to weigh on CAD.
US Dollar Index clings to daily gains above 98.50.
Canadian PM Trudeau announces general election on October 21.

Eren Sengezer FXStreet

The USD/CAD pair gained traction in the last hour and rose to its highest level of the day at 1.3182 as the falling crude oil prices weighed on the commodity-sensitive Loonie. As of writing, the pair was up 0.2% on the day at 1.3175.

OPEC's monthly report drags crude oil prices lower

Although the weekly data published by the Energy Information Administration (EIA) today showed a larger-than-expected draw in the US crude oil inventories, the barrel of West Texas Intermediate struggled to stage a recovery as investors remained focused on OPEC's monthly oil report, in which the organization lowered its global oil demand growth forecast amid economic slowdown. As of writing, the barrel of WTI was losing 1.5% on the day at $56.95.

Earlier today, Statistics Canada reported that the capacity utilization improved to 83.3% in the second quarter to beat the market expectation of 81.8% but was largely ignored by the market participants.

Meanwhile, Canadian Prime Minister Justin Trudeau today announced that they will be holding general elections on October 21.

On the other hand, the selling pressure surrounding major European currencies today allow the Greenback to preserve its strength with the US Dollar Index (DXY) advancing to a fresh weekly high of 98.75 and provides an additional boost to the pair. The US Bureau of Labor Statistic's monthly data today revealed that the core Producer Price Index (PPI) rose 2.3% on a yearly basis in August to surpass analysts' estimate of 2.2% and supported the DXY's upsurge.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.3178
Today Daily Change	0.0026
Today Daily Change %	0.20
Today daily open	1.3152

Trends
Daily SMA20	1.3274
Daily SMA50	1.3194
Daily SMA100	1.3285
Daily SMA200	1.3315

Levels
Previous Daily High	1.3192
Previous Daily Low	1.3134
Previous Weekly High	1.3384
Previous Weekly Low	1.3158
Previous Monthly High	1.3346
Previous Monthly Low	1.3178
Daily Fibonacci 38.2%	1.3156
Daily Fibonacci 61.8%	1.317
Daily Pivot Point S1	1.3126
Daily Pivot Point S2	1.31
Daily Pivot Point S3	1.3067
Daily Pivot Point R1	1.3185
Daily Pivot Point R2	1.3218
Daily Pivot Point R3	1.3244

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.

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