- Oil fails to capitalize on upbeat market mood.
- US Dollar Index recovers above 102 during American session.
- More than 900,000 Canadians have reportedly applied for unemployment benefits last week.
The USD/CAD pair dropped below the 1.4400 handle during the European trading hours as the USD selloff continued following the Federal Reserve's announcement of unlimited QE on Monday. However, the pair erased all of its losses in the second half of the day and was last seen trading at 1.4505, adding 0.07% on a daily basis.
The upbeat market mood as mirrored by the sharp gains witnessed in global equity indexes helped crude oil prices rise on Tuesday. The barrel of West Texas Intermediate (WTI) advanced to $25.15 but lost its traction to make it difficult for the commodity-sensitive loonie to stay strong against the greenback. As of writing, the WTI was down 0.75% on the day at $23.55.
Meanwhile, citing a source familiar with the matter, Bloomberg reported that 929,000 Canadians applied for unemployment benefits last week. When compared to 27,000 applications reported for the same time last year, this number reflects the drastic negative impact the coronavirus outbreak is having on the Canadian economy.
DXY recovers above 102
On the other hand, rising US Treasury bond yields on hopes of US finally reaching a deal on fiscal stimulus helped the USD find demand. After slumping to 101.05 earlier in the day, the US Dollar Index (DXY) reversed its direction and now looks to close above 102 with modest losses.
Moreover, the Markit Manufacturing PMI for the US fell to 49.2 in March's preliminary reading from 50.7 but beat the market expectation of 42.8 by a wide margin. However, the Composite PMI fell to its lowest level since March 2009 at 40.5 amid a sharp decline in the Services PMI.
Technical levels to watch for
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.