- 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
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 stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.