USD/CAD rises toward 1.3200, oil rally caps gains


  • WTI adds more than 1% on Thursday on renewed trade optimism.
  • US Dollar Index erases large part of Wednesday's losses.
  • Coming up: BoC Governor Poloz speech 17:45 GMT.

After spending a large portion of the day moving sideways near the 1.3170 mark, the USD/CAD pair gained traction during the American trading hours and rose toward the 1.3200 handle before losing its momentum. As of writing, the pair was up 0.08% on the day at 1.3182.

Trade headlines dominate markets

A Wall Street Journal report that claimed that the US was planning to cut existing tariffs on $360 billion worth of Chinese imports by 50% allowed market sentiment to turn positive on the day. Additionally, US President Trump tweeted out that they were "very close" to a big trade deal with China.

The 10-year US Treasury bond yield rallied on these developments and helped the greenback gather strength after the currency suffered heavy losses against its major rivals on FOMC Chairman Powell's dovish remarks on Wednesday. The US Dollar Index was last seen adding 0.25% on the day at 97.38.

On the other hand, crude oil prices pushed higher on hopes of global energy demand improving with an end to the US-China trade conflict and helped the commodity-sensitive CAD stay resilient against the buck. At the moment, the barrel of West Texas Intermediate is adding 1.1% on a daily basis at $59.40.

At 17:45 GMT, Bank of Canada Governor Stephen Poloz will deliver his speech titled 'Seeing the Big Picture with 2020 Vision' before the Empire Club of Canada. There won't be any macroeconomic data releases from Canada on Friday and investors are likely to continue to react to trade headlines.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3184
Today Daily Change 0.0004
Today Daily Change % 0.03
Today daily open 1.318
 
Trends
Daily SMA20 1.3257
Daily SMA50 1.3214
Daily SMA100 1.3232
Daily SMA200 1.3278
 
Levels
Previous Daily High 1.3242
Previous Daily Low 1.3162
Previous Weekly High 1.3322
Previous Weekly Low 1.3158
Previous Monthly High 1.3328
Previous Monthly Low 1.3114
Daily Fibonacci 38.2% 1.3193
Daily Fibonacci 61.8% 1.3211
Daily Pivot Point S1 1.3148
Daily Pivot Point S2 1.3116
Daily Pivot Point S3 1.3069
Daily Pivot Point R1 1.3227
Daily Pivot Point R2 1.3274
Daily Pivot Point R3 1.3306

 

 

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