USD/CAD climbs higher toward 1.2700 ahead of US data dump
- USD/CAD is rising after closing last three days lower.
- US Dollar Index edges higher toward 90.40 ahead of US data.
- WTI is down more than 1.5%, trades below $53 on Friday.
The USD/CAD pair dropped to its lowest level since April 2018 at 1.2623 on Thursday but reversed its direction in the last trading day of the week. As of writing, the pair was up 0.4% on a daily basis at 1.2685.
Focus shifts to US data
The selling pressure surrounding the greenback and surging crude oil prices on Thursday caused USD/CAD to suffer heavy losses.
The US Dollar Index (DXY) edged lower in the late American session on Thursday after FOMC Chairman Jerome Powell reassured markets that they are not even thinking about tightening the policy until inflation expectations get well anchored at 2%. Powell further reiterated they will communicate it well in advance when they decide to make adjustments to asset purchases. The DXY closed in the negative territory at 90.23.
Meanwhile, the barrel of West Texas Intermediate (WTI) posted its highest daily close in more than 10 months at $53.70 as investors price in a steady recovery in energy demand amid US stimulus.
On Friday, the DXY is posting small daily gains near 90.40 as markets await Retail Sales, Industrial Production and UoM Consumer Sentiment Index data from the US. On the other hand, the WTI is down 1.7% on the day at $52.80, possibly pressured by profit-taking ahead of the weekend.
Technical levels to watch for