USD/CAD stays above 1.35 as oil selloff continues to hurt loonie

  • WTI drops below $57 on Thursday after the weekly EIA report.
  • BoC's Wilkins reiterates current policy stance remains appropriate.
  • US Dollar Index turns flat on the day above 98.

The USD/CAD pair staged a downward correction after refreshing its 2019-high yesterday and eased below the 1.35 mark. However, with the crude oil, once again, turning south and suffering heavy losses, the commodity-sensitive loonie weakened and allowed the pair to climb above the 1.35 mark. As of writing, the pair was virtually unchanged on a daily basis at 1.3512.

The barrel of West Texas Intermediate climbed higher toward the $60 mark earlier in the day but made a sharp U-turn after the EIA in its weekly report showed a smaller than expected draw in crude oil stockpiles in the United States. As of writing, the barrel of WTI was trading at its lowest level since early March, losing 4.4% at $56.45.

Meanwhile, Carolyn Wilkins, Bank of Canada's senior deputy governor, in a recently delivered speech echoed the BoC's policy statement and said that the degree of accommodation provided by current policy interest rate was still appropriate.

On the other hand, the U.S. Bureau of Economic Analysis today said that the real GDP in the first quarter was expected to increase by 3.1% from 3.2% announced in the previous estimate. Other data from the U.S. revealed that pending home sales declines by 1.5% on a monthly basis in April and weekly jobless claims edged higher to 215K in the week ending May 24 and came in line with the market expectation. Although the US Dollar Index rose to a fresh weekly high of 98.28 in the early NA session, it retraced its daily gains and was last seen flat on the day at 98.15.

On Friday, the core Personal Consumption Expenditures Price Index, the Fed's favourite measure of inflation, will be looked upon for fresh impetus.

Technical levels to watch for


Today last price 1.3512
Today Daily Change -0.0006
Today Daily Change % -0.04
Today daily open 1.3518
Daily SMA20 1.3456
Daily SMA50 1.3412
Daily SMA100 1.3339
Daily SMA200 1.3261
Previous Daily High 1.3547
Previous Daily Low 1.3482
Previous Weekly High 1.3503
Previous Weekly Low 1.3357
Previous Monthly High 1.3522
Previous Monthly Low 1.3274
Daily Fibonacci 38.2% 1.3522
Daily Fibonacci 61.8% 1.3507
Daily Pivot Point S1 1.3484
Daily Pivot Point S2 1.345
Daily Pivot Point S3 1.3418
Daily Pivot Point R1 1.3549
Daily Pivot Point R2 1.3581
Daily Pivot Point R3 1.3615



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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Mildly bid, but bull reversal remains elusive

EUR/USD is currently trading at 1.1078, representing marginal gains on the day amid oil price spike. The currency pair on Friday faced rejection at the resistance of the trendline connecting June 25 and Aug. 13 highs.


GBP/USD: Brexit optimism keeps bulls in the drivers’ seat

The GBP/USD pair has advanced for a second consecutive week, reaching Friday 1.2505, its highest since last July, and settling not far below this last. Fading odds for a hard-Brexit continue to underpin the Pound.


USD/JPY looking to close the bearish opening gap amid risk-off

USD/JPY gapped down to 107.44 on Monday’s open as risk appetite is diminished following the attack on Saudi Arabian oil facilities. The spot now trades near 107.80, aiming to close the bearish opening gap ahead of a big week. 


Gold prices shot higher by over 1% in risk-off start to the week

Gold prices have shot higher in the open this week due to the increased tensions in the Middle East following the attack on Saudi Arabia’s oil and gas facilities in Abqaiq which has suspended half of the kingdom’s processing.

Gold News

The good, the bad and the extremely ugly crypto

XRP is in a borderline situation and with little room for doubt. Bitcoin demonstrates its power and positions itself as the emerging leader. Ethereum is in an intermediate situation, far from risk but also from opportunity.

Read more