USD/CAD erases Wednesday's gains, retreats to 1.3250 area
- Private sector employment rose more than expected in Canada.
- US Dollar Index recovers to 98.40 area in the American session.
- WTI looks to snap 2-day losing streak, trades above $58.50.
The USD/CAD pair rose to a fresh two-week high of 1.3310 yesterday boosted by the brıad-based USD strength and falling crude oil prices. With the West Texas Intermediate (WTI) staging a recovery following a sharp two-day correction today and the Greenback losing its bullish momentum, the pair erased Wednesday's gains and was last seen trading at 1.3255, losing 0.22% on a daily basis.
The WTI lost nearly 1% yesterday after the weekly report published by the Energy Information Administration (EIA) showed a larger-than-expected increase in the US crude oil stocks. However, with market sentiment improving on renewed optimism about US-China trade talks between deputy trade negotiators yielding a positive outcome, crude oil staged a recovery and the WTI was last up 0.7% on the day at $58.60.
Meanwhile, the monthly data published by the Automatic Data Processing (ADP) today showed private sector employment in Canada increased by 49,300 in August to beat the market expectation for a decline of 30,600 and provided an additional boost to the Loonie.
USD fails to build on Wednesday's upside
n the other hand, the US Dollar Index, which rose sharply on the Federal Reserve's neutral tone regarding the monetary policy outlook, lost its traction and slumped to a daily low of 98.24 before rebounding modestly in the last couple of hours. As of writing, the index was still down 0.15% on the day at 98.40.
On Friday, the Canadian economic docket will feature retail sales data and there won't be any significant macroeconomic data releases from 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.
