USD/CAD extends slide toward 1.33 as oil recovery gathers momentum
- WTI adds nearly 3% on Thursday.
- US Dollar Index stays close to 97 handle following yesterday's rebound.
- Coming up: Weekly jobless claims and import/export price index data from the U.S.
After closing the first three days of the week in the positive territory, the USD/CAD pair turned south on Thursday with the commodity-sensitive loonie gathering strength against its rivals amid surging crude oil prices. As of writing, the pair was down 0.28% on a daily basis at 1.3306.
Earlier today, reports of an oil tanker explosion in the Gulf of Oman provided a boost to crude oil prices with the barrel of West Texas Intermedia, which closed the day nearly 4% lower on Wednesday after the EIA reported a larger-than-expected buildup in crude oil stockpiles in the U.S., rising toward the $53 mark after a sharp U-turn. As of writing, the barrel of WTI was up 3.1% on the day at $52.65.
Meanwhile, in its latest monthly reports, OPEC reiterated that the escalating trade tensions were expected to continue to weigh on the global oil demand to limit crude oil's gains for the time being.
On the other hand, ahead of low-tier macroeconomic data releases from the U.S., weekly jobless claims and import/export price index, the US Dollar Index is consolidating yesterday's gains around the 97 mark, allowing crude oil prices to continue to drive the pair's price action.
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.
