USD/CAD pulls away from weekly highs, stays above 1.3100
- USD/CAD turned south after climbing above 1.3150 on Friday.
- Falling crude oil prices make it tough for CAD to gain additional strength.
- US Dollar Index posts modest daily losses below 93.00.
After closing the previous three trading days in the positive territory, the USD/CAD pair rose to its highest level in a week at 1.3170 on Friday but lost its traction. As of writing, USD/CAD was down 0.05% on the day at 1.3133.
Oil rally loses steam in second half of week
Following the sharp upsurge witnessed at the start of the week, crude oil prices struggled to push higher after OPEC in its monthly report revised its oil demand growth forecast lower for 2021. The barrel of West Texas Intermediate posted daily losses on Wednesday and Thursday and continues to edge lower on Friday. As of writing, the barrel of WTI was down 0.7% on the day at $40.65 but was off the daily low it touched at $40.15.
Meanwhile, the US Dollar Index (DXY) failed to make a daily close above 93.00 on Thursday and remains on the back foot on Friday, making it difficult for USD/CAD to stay in the green.
The relatively upbeat market mood, as reflected by the 0.7% gain seen in the S&P 500 futures, is weighing on the safe-haven USD. At the moment, the DXY is down 0.1% at 92.88. Later in the session, the US Bureau of Labor Statistics will release the October Producer Price Index (PPI) and the University of Michigan will publish the preliminary Consumer Sentiment Index for November.
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.
