USD/CAD edges higher to 1.3030 area as focus shifts to US data dump
- USD/CAD rebounds from the two-week low it set on Wednesday.
- WTI consolidate gains above $45 ahead of EIA data.
- US Dollar Index pares losses after slumping below 92.00.
The USD/CAD pair fell to its lowest level in two weeks at 1.2988 during the Asian session on Wednesday before staging a rebound. As of writing, the pair was up 0.24% on the day at 1.3025.
WTI quiets down around $45
Crude oil rally since the beginning of the week helped the commodity-related loonie outperform its rivals. On the back of renewed optimism for a steady recovery in the global energy demand, the barrel of West Texas Intermediate touched its highest level since early March at $45.66. Ahead of the US Energy Information Administration's Crude Oil Stocks Change data, the WTI is consolidating its gains a little above $45, making it difficult for the CAD to preserve its strength.
Meanwhile, the greenback is finding demand as the market mood turns cautious with investors staying on the sidelines while waiting for significant macroeconomic data releases from the US.
The US Bureau of Economic Analysis' second estimate of the third-quarter GDP growth will highlight the US economic docket. Other data will include New Home Sales, Durable Goods Orders, Initial Jobless Claims and Personal Income. At the moment, the US Dollar Index is posting small daily gains at 92.25.
Following the US data dump, the trading action is expected to remain subdued due to the Thanksgiving Day holiday in the US.
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.
