USD/CAD rebounds above 1.4100 as WTI slumps below $17
- WTI erases recovery gains, turns red below $17.
- US Dollar Index continues to consolidate below 100.50.
- Wall Street's main indexes post modest losses on Friday.
The USD/CAD pair dropped to a daily low of 1.4020 in the early trading hours of the American session as rising crude oil prices helped the commodity-related CAD gather strength against the greenback. However, with the WTI erasing all of its daily gains in the last hour, the pair gained traction and rove above the 1.4100 mark. At the moment, the pair is up 0.22% on the day at 1.4102.
Crude oil turns south in American session
After Angola's oil minister Azevedo acknowledged that the output cuts of OPEC+ and other producers will not be sufficient to re-balance the oil market, crude oil lost its recovery momentum. Furthermore, investors seem to be taking their profits off the table following the impressive rally witnessed in the second half of the week. As of writing, the WTI was down 1.6% on the day at $16.80.
On the other hand, the greenback doesn't seem to be having a difficult time limit its losses into the weekend with the uninspiring performance of the major equity indexes in the US boosting risk-on flows. Although the US Dollar Index is posting modest daily losses at 100.40, it remains on track to close the second straight week in the positive territory.
Earlier in the day, the data published by the US Census Bureau revealed that Durable Goods Orders declined by 14.4% in March. Moreover, the University of Michigan's Consumer Sentiment Index dropped to 71.8 in April's final reading from 89.1 in March.
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.
