USD/CAD slumps below 1.32 as oil recovery gathers momentum


  • Crude oil stages decisive recovery after falling for two days.
  • US Dollar Index test 98 handle after disappointing data.
  • Annual inflation in Canada remained unchanged at 1.9% in September.

The USD/CAD pair advanced to a fresh session high of 1.3228 in the early trading hours of the American session but changed its direction with the commodity-related Loonie capitalizing on rising crude oil prices. As of writing, the pair was trading at 1.3188, losing 0.07% on a daily basis.

The data published by Statistics Canada on Wednesday revealed that inflation, as measured by the Consumer Price Index (CPI), stayed unchanged at 1.9% on a yearly basis in September and fell short of the market expectation of 2.1%. Although the initial market reaction caused the pair to gain traction, crude oil's helped the CAD stay resilient.

Upbeat market mood boosts crude oil prices

United States (US) President Donald Trump today said that a trade deal with China was "being papered" and allowed market sentiment to improve in the second half of the day. The barrel of West Texas Intermediate (WTI), which spent a large portion of the day moving sideways near the $53 handle following a two-day long slide, is now up 1.6% on a daily basis at $53.60.

On the other hand, the US Dollar Index extended its slide after the US Census Bureau reported that retail sales in September declined by 0.3% to come in worse than the market expectation for an increase of 0.3% weighed on the Greenback. At the moment, the US Dollar Index is at its lowest level since September 13th at 97.99, erasing 0.32% on the day and keeping the pair's losses limited for the time being.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.3191
Today Daily Change -0.0007
Today Daily Change % -0.05
Today daily open 1.3198
 
Trends
Daily SMA20 1.3271
Daily SMA50 1.3266
Daily SMA100 1.3238
Daily SMA200 1.3287
 
Levels
Previous Daily High 1.3248
Previous Daily Low 1.3196
Previous Weekly High 1.3348
Previous Weekly Low 1.317
Previous Monthly High 1.3384
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3215
Daily Fibonacci 61.8% 1.3228
Daily Pivot Point S1 1.318
Daily Pivot Point S2 1.3162
Daily Pivot Point S3 1.3128
Daily Pivot Point R1 1.3232
Daily Pivot Point R2 1.3266
Daily Pivot Point R3 1.3284

 

 

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD hits highest since March amid US protests, European reopening

EUR/USD has jumped above 1.1150, trading at the highest since March. Protests in the US are grabbing the headlines and marginally supporting the dollar. European countries continue reopening their economies amid falling coronavirus statistics. 

EUR/USD News

GBP/USD resumes rally amid Brexit optimism, dollar weakness

GBP/USD is trading above 1.2550, extending its gains. Reports about British readiness to compromise in Brexit talks, conditioned on EU concessions, is helping boost the pound. US protests are eyed.

GBP/USD News

Bitcoin is three steps away from $14000

Bitcoin joins the list of bullish breakouts and leaves the relative highs at $14000 as a clear target in the short term. Ethereum continues to gain market share and sets the price level of $300 as a goal in the short term.

Read more

Gold trades with modest losses around $1735 level, downside seems limited

Gold traded with a mild negative bias through the early European session and was last seen hovering near the lower end of its daily range, around the $1735 region.

Gold News

WTI sits at three-month highs near $36.50 ahead of Russia’s decision, API

WTI (July futures on Nymex) broke its bullish consolidative phase to the upside in the European session and clinched fresh three-month highs at 36.48.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures