- WTI continues to trade above $58 ahead of next week's OPEC meeting.
- US Dollar Index posts modest daily gains above 98.30.
- Coming up: Second estimate of Q3 GDP, Durable Goods Orders, PCE Price Index data from US.
The USD/CAD pair closed the previous day with a loss of 30 pips as the commodity-related loonie gathered strength on the back of rising crude oil prices. With investors staying on the sidelines ahead of key macroeconomic data releases from the US, the pair is moving sideways near the 1.3270, where it's virtually unchanged on the day.
Crude oil rally helps CAD find demand
Hopes of the Petroleum Exporting Countries (OPEC) extending the crude oil output cuts at the group's meeting next week provided a boost to crude oil prices. According to the latest reports, the group will be discussing whether to extend the output curb by three or six months.
Ahead of the Energy Information Administration's (EIA) weekly crude oil stock report for the US, the barrel of West Texas Intermediate is trading at $58.40, adding 0.4% on the day and 1.2% since the start of the week.
In the second half of the day, markets will be paying close attention to macroeconomic data releases from the US ahead of the Thanksgiving break.
The US Bureau of Economic Analysis will publish its second estimate of the third-quarter Gross Domestic Product (GDP) growth, which is expected to remain steady at 1.9% on a yearly basis, alongside the core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation. Durable Goods Orders, weekly Initial Jobless Claims and Pending Home Sales will be featured in the US Economic docket as well. In the meantime, the US Dollar Index is up 0.1% on the day at 98.35, keeping the pair's losses limited for the time being.
Previewing the data, "our economists don’t expect any material revisions to the second print on Q3 real GDP (+1.9% preliminary vs. 1.9% advance), but the October Durable Goods data will provide an initial read on current-quarter capex spending if we can adjust for any impact from the GM strikes," said Deutsche Bank analysts.
Technical levels to watch for
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