USD/CAD drops below 1.33 as WTI breaks above $70

Crude oil prices rally in the NA session and help the commodity-sensitive loonie gather strength.
US Dollar Index stays in the daily range above 94.

Eren Sengezer FXStreet

The USD/CAD pair came under a selling pressure in the last hour and erased its daily gains to turn negative below the 1.33 mark. As of writing, the pair was trading at 1.3290, losing 0.05% on the day.

The pair's recent fall seems to be a product of a rally witnessed in crude oil prices. According to Reuters, a senior official working for the State Department in the United States said that countries would face secondary sanctions if they were to buy oil from Iran after November 4. "We're going to isolate streams of Iranian funding and looking to highlight the totality of Iran's malign behavior across the region," the official, speaking on condition of anonymity, told reporters.

Boosted by this headline, the barrel of West Texas Intermediate added more than $2 and rose above the $70 mark for the first time in more than a month. As of writing, the barrel of WTI was trading at $70.02, adding 2.8% on the day.

The US Dollar Index, meanwhile, stays in its recent range above the 94 mark and looks to close the day in the positive territory.

Technical outlook

The initial support for the pair could be seen at 1.3260 (Jun. 22 low) before 1.3200 (psychological level/Jun. 19 low) and 1.3160 (Jun. 18 low). On the upside, align at 1.3330 (daily high), 1.3380 (Jun. 22 high) and 1.3440 (Apr. 5, 2017, high).

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.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold resumes its decline below $4,400

Gold maintains an erratic trade so far this week, now slipping back below the key $4,400 mark per troy ounce following the stronger US Dollar and a strong rebound in US Treasury yields across the curve, particularly following US Producer Prices.

XRP slides amid a fragile crypto market structure

Ripple (XRP) falls for the second straight day, trading at $1.37 on Thursday. The broader cryptocurrency market remains fragile as investors weigh the impact of geopolitical tensions in the Middle East, which triggered persistent increases in Crude Oil prices while restricting shipping through the Straight of Hormuz and the Red Sea.

Jobs opened the door for the Fed — inflation decides whether it walks through

The latest US jobs report did not end the debate over the Federal Reserve’s (Fed) next move. It may have done something more subtle: it gave policymakers permission to keep their options open. After months of softer labour market signals, August delivered a stronger-than-expected rebound.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.