USD/CAD turns flat on the day near 1.3620 as oil recovers modestly after EIA data

• EIA says crude oil stocks were virtually unchanged in the week ending December 21.
• WTI rises above the $45 mark following the report.
• US Dollar Index moves sideways below 96.50.

After inching closer to 1.3659 and coming within a couple of pips of the 19-month high that was posted yesterday, the USD/CAD pair lost its traction and erased its daily gains in the last hour  to turn flat on the day near 1.3620.

A modest rebound witnessed in crude oil prices following the EIA’s weekly report seems to be helping the commodity-sensitive loonie gather some strength. Following a fall to the $44.50 area, the barrel of West Texas Intermediate rose above the $45 handle. In its publication, the EIA said that crude oil stocks remained virtually unchanged in the U.S. in the week ending December 21.

On the other hand, the US Dollar Index continues to move sideways in the negative territory below the 96.50 level. Today’s data from the United States showed that pending home sales declined 0.7% and the ISM-Chicago’s PMI came in at 65.4 to beat the market consensus of 62. Nevertheless, markets paid little to no attention to these figures.

Technical levels to consider