USD/CAD returns to 1.3050 area as DXY erases daily gains

  • US Dollar Index turns flat near 97.40 in American session.
  • WTI rebounds to $58.50 ahead of weekly API report.
  • Annual core inflation stayed unchanged at 2.3% in December in US.

The USD/CAD erased the gains it posted during the first half of the day as the recovering crude oil prices and a broadly weaker USD weighed on it. As of writing, the pair was virtually unchanged on a daily basis at 1.3055.

Crude oil's recovery gained traction during the American trading hours after Russian news agency TASS reported that the OPEC+ could postpone the March meeting to June and extend the output cut until then. The barrel of West Texas Intermediate (WTI), which closed the last seven trading days with losses, is up 0.7% on the day near $58.50 to help the commodity-related CAD find demand.

US Dollar Index reverses course

On the other hand, the US Dollar Index reversed its direction after failing to break above the 97.50 mark and turned flat on the day near 97.40. A more-than-1% drop seen in the 10-year US Treasury bond yield seems to be hurting the greenback. 

Earlier in the day, the data published by the US Bureau of Labor Statistics showed that the core Consumer Price Index (CPI) remained steady at 2.3% on a yearly basis in December as expected while falling to 0.1% on a monthly basis.

Commenting on the data, "while the trend in core is almost certainly not as weak as 0.1% per month, there is certainly no sign of much upward momentum," said TD Securities analysts. "Core PCE inflation continues to run below core CPI inflation. As of November, the core PCE index was up 1.6% y/y—versus 2.3% for the core CPI."

Technical levels to watch for


Today last price 1.3051
Today Daily Change -0.0008
Today Daily Change % -0.06
Today daily open 1.3059
Daily SMA20 1.3071
Daily SMA50 1.3171
Daily SMA100 1.3195
Daily SMA200 1.3246
Previous Daily High 1.3068
Previous Daily Low 1.3031
Previous Weekly High 1.3106
Previous Weekly Low 1.2956
Previous Monthly High 1.3322
Previous Monthly Low 1.2951
Daily Fibonacci 38.2% 1.3054
Daily Fibonacci 61.8% 1.3046
Daily Pivot Point S1 1.3037
Daily Pivot Point S2 1.3016
Daily Pivot Point S3 1.3
Daily Pivot Point R1 1.3074
Daily Pivot Point R2 1.309
Daily Pivot Point R3 1.3112



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

Editors’ Picks

EUR/USD near daily lows with mixed US data

The EUR/USD pair continues trading just above the 1.1000 level, as US Durable Goods Orders rose by 2.4%, largely surpassing the market’s expectations, although core readings plummeted in the red.


GBP/USD below 1.3000 ahead of BOE

The dollar continues to advance against all of its major rivals, getting an additional boost from upbeat CB Consumer Confidence. GBP/USD trading around 1.2980. BOE to have a monetary policy meeting this Thursday.


Bitcoin moving on the razor edge

Yesterday's positive day along the crypto board has brought the BTC/USD pair to the borderline between a bearish market and a free space where it can grow again in search of new historical highs. 

Read more

WTI bounces off lows, back above $53.00/bbl

After hitting new lows in levels last seen in early October 2019 near $52.00, prices of the WTI have managed to regains some attention and have retaken the $53.00 mark per barrel.

Oil News

USD/JPY Forecast: Consolidating at lows, bearish

Coronavirus-related fears and upcoming first-tier event keeping investors in cautious mode. US Durable Goods Orders seen posting a tepid advance in December. USD/JPY at risk of resuming its decline once below 108.65.