USD/CAD slumps below 1.3250 amid ongoing USD selloff

• US Dollar Index drops to 10-day lows below 96.
• Dovish Fed expectations weigh on the greenback.
• WTI clings to small gains above $53.

The USD/CAD pair broke below the 1.33 mark in the early NA session and extended its slide to a new weekly low of 1.3236. As of writing, the pair was down more than 100 pips on the day at 1.3240.

The pair’s recent drop seems to be caused by a strengthening bearish pressure surrounding the buck in the last couple of hours. Although there were no clear catalysts that could have a triggered a new wave of USD-selling, end-of-week flows toward London fix and reports of the Fed planning to  end the balance sheet reduction scheme earlier than initially planned seem to be weighing on the buck. At the moment, the DXY is down 0.7% on the day at 95.90.

On the other hand, crude oil is extending its recovery for the second straight day on Friday to help the commodity-sensitive loonie outperform its major rivals. With OPEC officials noting that they could take further measures to balance the oil market in the April meeting if needed and the U.S. threatening to impose sanctions on Venezuela’s oil exports, the WTI gained traction on Thursday and erased the majority of its weekly losses. At the moment, the barrel of WTI is up 0.4% on the day at $53.35.

Technical levels to consider