USD/CAD plummets to fresh 10-day lows below 1.31 as oil shoots higher after API report

  • WTI leaps to $70 in post-settlement trade.
  • Weekly API report shows a larger-than-expected draw in the U.S. crude oil inventories.
  • US Dollar Index erases gains, appraches 95.

The USD/CAD pair came under heavy selling pressure in the late NA session as the commodity-sensitive loonie started to gather strength on rising crude oil prices. As of writing, the pair was down 0.85% on the day at 1.3055.

The weekly report released by the American Petroleum Institute in the last hour revealed that crude oil inventories fell by 8.6 million barrels in the week to September 7 to compared with analysts' estimate for a decrease of 805,000 barrels. Boosted by the data, the barrel of West Texas Intermediate, extended its daily gains and touched a fresh weekly high at $70. At the moment, the barrel of WTI is up 3.5% on the day at $69.85.

On Wednesday, investors will be closely following the EIA report, which is expected to show a draw of 750,000 barrels in crude oil stocks in the United States.  

Meanwhile, the US Dollar Index lost its footing amid the sharp fall witnessed in the USD/CAD pair and erased all of its daily gains. The index was last seen down 0.1% at 95.06.

The Canadian economic docket tomorrow will feature the capacity utilization data for the second quarter of the year. The PPI will be the only significant data release in the United States. 

Technical levels to consider

The immediate resistance for the pair aligns at 1.3080 (100-DMA) ahead of 1.3170 (daily high) and 1.3200/05 (psychological level/Sep. 4 high). On the downside, supports could be seen at 1.3000 (psychological level), 1.2960 (Aug. 7 low) and 1.2900 (Aug. 29 low).

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD pressured around 1.13 after jump in US jobs

EUR/USD is trading around 1.13, down after US Non-Farm Payrolls shocked with a leap of 2.5 million jobs in May, contrary to all projections. The greenback is gaining while stocks are falling, a correlation breakdown. ECB stimulus previously supported the euro.


GBP/USD retreats from highs

GBP/USD is trading below 1.27, off the highs. The pound is struggling after Chief EU Negotiator Barnier reported little progress in Brexit talks. Robust US jobs support the dollar.


Gold sees weekly closing below $1700 - a caution for bulls

The steady decline in Gold prices (futures on Comex) accelerated on Friday, as the rates closed the week below the 1700 mark for the first time in three weeks at 1688.35. A weekly closing below the key 1700 level is unlikely to bode well for the bulls.

Gold News

Institutional demand exceeds Bitcoins supply

Greyscale floods the market with fresh money to satisfy the demand of its clients. Investors, willing to pay a 29% surcharge for exposure to Bitcoin without suffering the legal and operational inconveniences. Market remains at risk on the verge of new bullish territory.

Read more

WTI rallies above $39 as focus shifts to OPEC+ meeting

Crude oil prices built on Thursday's modest gains and rose sharply on Friday boosted by the upbeat market mood optimism surrounding Saturday's OPEC+ meeting. 

Oil News