- WTI extends slide below $60 mark on Thursday.
- US Dollar Index builds on Wednesday’s gains, climbs to 97.50.
- Focus shifts to FOMC members Kaplan, Kashkari and Williams’ speeches.
The USD/CAD pair posted daily gains for the second straight day on Wednesday and extended its rally into a fresh 10-day high of 1.3057 on Thursday. As of writing, the pair was up 0.08% on the day at 1.3048.
Oil reverses direction as geopolitical tensions ease
The sharp U-turn crude oil prices made on Wednesday after US President Donald Trump confirmed that there were no casualties in Iran’s missile attacks and said Iran was standing down to help worries over a protracted US-Iran conflict in the Middle East dissipate.
The barrel of West Texas Intermediate, which rose to its highest level since April at $65.60, erased 4.3% to close near $60 and stretched lower on Thursday to make it difficult for the commodity-related loonie to stay resilient against the greenback. At the moment, the barrel of WTI is trading at $59.70, down 0.45% on a daily basis.
On the other hand, the 10-year US Treasury bond yield rose sharply with the market sentiment turning positive and helped the US Dollar Index continue to push higher. Ahead of the speeches by Dallas Fed President Kaplan, Minneapolis Fed President Kashkari and NY Fed President Williams, the index is up 0.12% on the day at 97.43.
The Canadian economic docket will feature Building Permits and Housing Starts data on Thursday and Unemployment Rate on Friday.
Technical levels to watch for
Share
