- Greenback sticks to recovery gains despite dismal data.
- US Dollar Index looks to close the day in the positive territory.
- WTI fails to stay above the $68 mark on Thursday.
After closing the previous day a few pips above the 1.30 mark, the USD/CAD pair erased the majority of this week's losses on Thursday as the loonie failed to preserve its strength amid falling crude oil prices. At the moment, the pair is trading at 1.3060, adding 0.5% on the day.
Despite the disappointing macroeconomic data releases from the United States, the greenback was able to hold on to its recovery gains in the NA session and was last seen moving sideways near 95.50, where it was up 0.43% on the day. The PMI data released by Markit today showed that activity in both the manufacturing and service sectors expanded at a slower pace than expected. Furthermore, new home sales declined by 1.7% and the Kansas Fed's Manufacturing Index fell to 10 in August from 22 in July.
A technical correction seems to be the primary fuel of the USD's upsurge today. Meanwhile, markets are expecting Fed officials to reiterate the central bank's independence at the Jackson Hole Symposium. Earlier today, speaking to news outlets at the sidelines at the symposium, Kansas Fed President George said that President Trump's comments wouldn't impact her decision to vote for two more rate hikes before the end of the year.
On a positive note for the loonie, Canada's Minister of Foreign Affairs Chrystia Freeland said that she was encouraged by the optimism of NAFTA partners and the progress the U.S. and Mexico were showing was an essential step toward agreeing on a new deal.
In the meantime, following yesterday's strong rally, crude oil reversed its course and the barrel of West Texas Intermediate was last trading at $67.60, losing 50 cents on the day.
The initial support for the pair aligns at 1.3000 (psychological level) ahead of 1.2960 (Aug. 7 low) and 1.2920 (Jun. 8 low). On the upside, resistances are located at 1.3080 (daily high), 1.3110 (50-DMA) and 1.3175 (Aug. 16 high).
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.