USD/CAD drops below 1.32 as WTI recovers above $57 despite rising US oil stocks
- Weekly EIA report shows a 10.3 million barrels increase in US crude stocks.
- WTI extends recovery following the initial reaction the data.
- Commodity-sensitive loonie gathers strength on rising oil prices.
After spending the majority of the day in a relatively tight range above the 1.32 mark, the USD/CAD pair came under a bearish pressure in the last hour as commodity-sensitive loonie started to gather strength on the back of a deep recovery seen in crude oil. As of writing, the pair was losing 0.35% on the day at 1.3195.
Although the weekly report published by the EIA today showed that crude oil stocks in the U.S. increased by 10.3 million barrels in the week ending November 9 and the oil output average 10.1 million barrels per day, the barrel of West Texas Intermediate preserved its bullish momentum and rose to a fresh daily high of $57.23. At the moment, WTI is trading at $56.95, adding nearly $1 on the day.
On the other hand, the greenback failed to capitalise on strong retail sales data and allowed the pair to extend its slide. The US Dollar Index, which tracks the greenback against a basket of six major currencies, was last up 0.1% on the day at 97.10.
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.
