USD/CAD drops toward 1.2600 as CAD capitalizes on surging oil prices

  • USD/CAD reversed its direction after climbing above 1.2650.
  • WTI is rising more than 3%, closes in on $62.00.
  • US Dollar Index clings to small daily gains below 91.00.

The USD/CAD pair advanced to a daily high of 1.2659 in the early American session but lost its traction with rising crude oil prices providing a boost to the commodity-related loonie and dropped to 1.2604. As of writing, the pair was down 0.1% on the day at 1.2618.

Oil rally helps CAD gather strength

After spending the first half of the day trading in a relatively tight range around $60, the barrel of West Texas Intermediate (WTI) rose sharply despite the fact that the weekly EIA report showed a huge increase in US crude oil stocks. At the moment, WTI is up 3.88% at $61.72.

On the other hand, the US Dollar Index is staying in the positive territory at 90.90 supported by a more-than-6% increase in the 10-year US Treasury bond yield and limiting USD/CAD's losses.

The data from the US showed on Wednesday that employment in the private sector increased by 117,000 in February, compared to analysts' estimate of 177,000. Additionally, the ISM Services PMI edged lower to 55.3 in February and missed the market expectation of 58.7. Nevertheless, these disappointing figures failed to trigger a significant market reaction.

Later in the session, the US Federal Reserve will release its Beige Book. 

Technical levels to consider


Today last price 1.2619
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 1.2621
Daily SMA20 1.2678
Daily SMA50 1.2721
Daily SMA100 1.2871
Daily SMA200 1.3124
Previous Daily High 1.2698
Previous Daily Low 1.26
Previous Weekly High 1.273
Previous Weekly Low 1.2468
Previous Monthly High 1.287
Previous Monthly Low 1.2468
Daily Fibonacci 38.2% 1.2638
Daily Fibonacci 61.8% 1.2661
Daily Pivot Point S1 1.2582
Daily Pivot Point S2 1.2542
Daily Pivot Point S3 1.2484
Daily Pivot Point R1 1.268
Daily Pivot Point R2 1.2738
Daily Pivot Point R3 1.2777



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD falls toward 1.20 as the dollar gains further ground

EUR/USD is under pressure as the dollar gains ground across the board, amid a damp market mood. The euro fails to benefit from the European regulators' decision to reinstate the J&J vaccine.


GBP/USD remains pressured below 1.3950 amid mixed UK data

GBP/USD is trading below 1.3950, extending the pullback from its seven-week highs. The dollar benefits from the risk-off mood, while the pound struggles after CPI missed with 0.7% and as UK PM Johnson warns of winter covid wave.


Gold likely to face stiff resistance near $1795-$1800, focus on yields

Gold (XAU/USD) rebounded on Tuesday as the US Treasury yields tumbled alongside global stocks. Surging covid infections globally brought a reality check into the markets and triggered a fresh risk-aversion wave.

Gold News

Binance needs to breach this crucial supply barrier to set up record levels again

Binance Coin price shows a short-term rejection around the supply zone’s upper layer at $594.32. A close above the said level is a must if BNB bulls want to scale to new highs. Supply distribution shows that whales holding between 100,000 to 1,000,000 BNB are accumulating.

Read more

Bank of Canada Preview: Dovish surprise to lift USD/CAD

Bank of Canada is expected to leave its policy unchanged at 0.25%. Investors await adjustments to BoC’s asset-buying program. USD/CAD is likely to react more significantly to a dovish surprise.

Read more