USD/CAD pulls away from daily lows, turns flat above 1.3150
- Renewed trade optimism helps the greenback recover its losses.
- US Pres. Trump calls Fed policy 'insane' during an interview.
- WTI climbs to fresh June highs above $59.
The USD/CAD pair dropped to 1.3140 area earlier in the day but staged a modest rebound in the last hour supported by a stronger greenback. As of writing, the pair was trading at 1.3160, losing 0.05% on a daily basis.
Earlier today, U.S. Treasury Secretary Mnuchin said that the U.S.-China trade deal was 90% completed. On a similar tone, President Trump told Fox Business that there was a possibility of them reaching a trade deal with China when he meets President Xi on the sidelines at the G20 meeting in Japan.
The renewed trade optimism provided a boost to the 10-year Treasury bond yield and allowed the greenback to continue to erase the losses it suffered against its rivals following the FOMC's dovish shift last week. Meanwhile, the data from the U.S. showed that durable goods orders contracted by 1.3% on a monthly basis in May and the goods trade deficit rose to $74.55 billion from $70.92 billion. Despite the disappointing data, the US Dollar Index didn't have a difficult time staying in the positive territory and was last up 0.08% on the day at 96.26.
On the other hand, hopes of the U.S. and China ending the trade conflict also helped crude oil prices continue to rise, allowing the commodity-sensitive loonie to show resilience. At the moment, the barrel of West Texas Intermediate is trading at its highest level of June above $59, adding 0.8% on a daily basis.
Technical levels to consider
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.
