Search ForexCrunch
  • US Dollar Index climbed above 100 during American session.
  • WTI erases majority of recovery gains, trades a little above $20.
  • Weekly Jobless Claims in the US increased by 5.2 million last week.

The USD/CAD pair dropped to below the 1.4100 handle during the early American session but reversed its direction in the last hour amid broad-based USD strength. As of writing, the pair was trading at its highest level in ten days at 1.4147, adding 0.25% on a daily basis.

Earlier in the day, the data published by Statistics Canada showed that Manufacturing Sales increased by 0.5% in February despite coronavirus-related disruptions to shipments and helped the CAD gather strength against its peers. Moreover, the technical rebound witnessed in crude oil prices provided an additional boost to the loonie as well.

DXY rises sharply

However, with the greenback finding strong demand into the London fix, the US Dollar Index (DXY) surged to a new weekly-top above the 100 mark and allowed the pair to gain traction. As of writing, the DXY was up 0.6% on the day at 100.15. Meanwhile, the weekly data published by the US Department of Labor revealed that there 5.2 million Initial Claims for unemployment benefits in the week ending April 11th but was largely ignored by the market participants.

Moreover, the barrel of West Texas Intermediate erased a large portion of its daily gains and returned to $20 area to make it tough for the CAD to show resilience against the USD.

Technical levels to watch for