USD/CAD retreats to 1.3550 area, recovers on oil selloff


  • USD/CAD fell to 1.3550 area during the American session.
  • Falling crude oil prices makes it difficult for loonie to preserve its strength.
  • US Dollar Index slumps toward 97.00 after upbeat data.

The USD/CAD climbed to 1.3600 on broad-based USD strength during the first half of the day but lost its traction during the American session. After dropping to a session low of 1.3550, however, the pair staged a rebound and was last seen trading flat on the day at 1.3573.

Upbeat US data weigh on greenback

The data from the US on Wednesday showed that the business activity in the manufacturing sector expanded in June with the ISM Manufacturing PMI advancing to 52.6 from 43.1 in May. Moreover, the ADP Employment Changed arrived at +2.36 million. Although this reading came in lower than the market expectation of +3 million, May's print got revised up to +3.06 million from -2.76 million and provided a boost to market sentiment.

The USD failed to preserve its strength amid risk-on flows and the US Dollar Index (DXY) slumped toward 97.00. As of writing, the DXY was down 0.32% on the day at 97.08.

On the other hand, despite the weekly data published by the US Energy Information Administration showed that crude oil stocks decreased by 7.2 million barrels, the West Texas Intermediate (WTI) struggled to stage a rebound. With the WTI posting daily losses around mid-$39s, the commodity-sensitive CAD is having a hard time finding demand.

Later in the day, the FOMC will release the minutes of its June meeting.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3566
Today Daily Change -0.0009
Today Daily Change % -0.07
Today daily open 1.3575
 
Trends
Daily SMA20 1.3551
Daily SMA50 1.3795
Daily SMA100 1.3802
Daily SMA200 1.3491
 
Levels
Previous Daily High 1.37
Previous Daily Low 1.357
Previous Weekly High 1.3716
Previous Weekly Low 1.3486
Previous Monthly High 1.3802
Previous Monthly Low 1.3316
Daily Fibonacci 38.2% 1.362
Daily Fibonacci 61.8% 1.365
Daily Pivot Point S1 1.3531
Daily Pivot Point S2 1.3486
Daily Pivot Point S3 1.3401
Daily Pivot Point R1 1.366
Daily Pivot Point R2 1.3744
Daily Pivot Point R3 1.3789

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD holds above 1.30 as UK Q2 GDP falls 20.4%

GBP/USD is on the back foot, trading closer to 1.30 amid dollar strength. UK Q2 GDP fell by 20.4%, within expectations. The devastating drop was priced in by markets.

GBP/USD News

Gold completes $200 collapse, trades below $1,900

Gold remains under immense pressure, trading below $1,900 after the biggest rout in seven years. Profit-taking and higher US yields weigh on the precious metal. US inflation figures are eyed.

Gold News

EUR/USD pressured toward 1.17 amid higher US yields

EUR/USD is falling toward 1.17 as US bond yields rise amid the US fiscal impasse and ahead of US inflation figures. Coronavirus headlines and eurozone industrial output are also in play.

EUR/USD News

Forex Today: Gold sell-off extends, dollar reigns supreme amid fiscal impasse, ahead of data

US bond yields are on the rise, supporting the recovering dollar and contributing to a sell-off in precious metals. The lack of progress in US fiscal talks and the increase in America's coronavirus deaths are among the depressing factors. US CPI is eyed.

Read more

WTI: Big move looks overdue

WTI could soon witness a big move in either direction. That’s because, the spread between Bollinger bands – volatility indicators placed 2 standard deviations above and below the 20-day simple moving average of price - has narrowed ...

Oil News

Forex MAJORS

Cryptocurrencies

Signatures