- Crude oil prices gain traction on renewed trade optimism.
- Persistent USD weakness helps the USD/CAD pair find support.
- Markets ignored the inflation data from the United States.
The USD/CAD pair fluctuated in a narrow band above the 1.33 mark for the majority of the day before coming under modest bearish pressure in the last hours with the rising crude oil prices allowing the commodity-related Loonie to gather strength against its rivals. After touching a session low of 1.3272, the pair erased a small portion of its losses and was last seen trading at 1.3290, down 0.3% on a daily basis.
Shortly after the United States(US)-China high-level trade negotiations kicked off in Washington on Thursday, an official from the US Chamber of Commerce said there was a possibility of a currency agreement in trade talks in exchange for a delay in tariff hikes. Moreover, Chinese Vice Premier Liu He voiced China's willingness to reach an agreement "on matters that both sides care about."
The improved risk sentiment provided a boost to crude oil prices and the barrel of West Texas Intermediate is now up 1.3% on the day at $53.50.
USD can't shake off the bearish pressure
Earlier in the day, the only significant macroeconomic data release of the day revealed that the core inflation in the US, as gauged by the core Consumer Price Index (CPI), stayed unchanged at 2.4% on a yearly basis in September and failed to trigger a market reaction.
The US Dollar Index, which tracks the Greenback's performance against a basket of six major currencies, struggled to pull away decisively from the daily low it set at 98.66 after the data and is now moving sideways near 98.80, erasing 0.3% on a daily basis.
Technical levels to watch for
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.