- Greenback stays strong for the second straight day on Thursday.
- WTI retreats to $67 handle in the early NA session.
- USD/CAD erases all of its daily losses from yesterday.
After spending the majority of the day in a relatively tight range near the 1.3020 mark, the USD/CAD pair gained traction and advanced to a daily high at 1.3098. As of writing, the pair was trading at 1.3093, adding 0.28% on a daily basis.
The pair’s recent upsurge seems to be the product of a broad-based USD strength. Boosted by a sharp fall witnessed in the EUR/USD pair on ECB president Draghi’s remarks, the US Dollar Index, which tracks the buck against a basket of six major currencies, rose to its highest level in more than two months at 96.63. Furthermore, today’s upbeat data from the U.S. supported the buck’s rally.
The U.S. Census Bureau today reported that new orders for manufactured durable goods orders increased by 0.8% in September to beat the market expectation of -0.9%. Moreover, pending home sales on a monthly basis rose 0.5% following a number of disappointing housing data earlier this week.
On the other hand, crude oil prices, once again, struggled to stage a deep recovery on Thursday. After rising to $67.60, the barrel of West Texas Intermediate reversed its course in the last hour to make it difficult for the commodity-sensitive loonie to stay resilient against its peers. Russia’s Energy Minister Alexander Novak said that the oil market was in balance and they were ready to continue to cooperate with OPE and non-OPEC producers. At the moment, the barrel of WTI is up 60 cents on the day at $67.
Technical levels to consider
With a daily close above 1.3100 (daily high/Oct. 24 high) the pair could target 1.3130 (Oct. 19 high) and 1.3200 (psychological level/Sep. 10 low). On the downside, supports could be seen at 1.3050 (100-DMA), 1.3000 (psychological level) and 1.2975 (200-DMA).
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