USD/CAD drops below 1.33 on crude oil recovery
- WTI climbs above $55 ahead of OPEC report, Baker Hughes data.
- US Dollar Index clings to gains above 98 mark.
- Coming up: University of Michigan Consumer Confidence Index and housing data from US.
The USD/CAD pair fluctuated in a tight range a little above the 1.33 handle on Thursday but came under modest bearish pressure today with the commodity-related Loonie gathering strength on the back of rising crude oil prices. As of writing, the pair was down 0.13% on a daily basis at 1.3290.
Crude oil rebounds on Friday
Before the OPEC releases the August Oil Market report at 11:20 GMT, the barrel of West Texas Intermediate is up 1.5% on the day at $55.50. The fact that European equity indexes and the 10-year US Treasury bond are posting decisive recovery gains on Friday points out to an improved market sentiment, which helps crude oil gain traction. Later in the day, the weekly Baker Hughes rig data will also be looked upon for fresh impetus.
On the other hand, the Greenback continues to outperform its major rivals with the US Dollar Index (DXY) pushing higher for the fourth straight day. As the DXY is clinging to its daily gains at 98.27, the pair struggles to edge lower.
Later in the day, the University of Michigan's Consumer Confidence Index, which is expected to retreat to 97.2 in August from 98.4, and Housing Starts Change and Building Permits data from the US will be looked upon for fresh impetus.
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.
