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  • WTI trades below $20 ahead of EIA data.
  • US Dollar Index recovers above 99.50 on Wednesday.
  • Bank of Canada is expected to keep its policy rate unchanged at 0.25%.

The unabated selling pressure surrounding crude oil prices continues to weigh on the commodity-sensitive loonie. As of writing, the USD/CAD pair was trading at its highest level in six days at 1.4035, adding 1.15% on a daily basis.

After the data published by the American Petroleum Institue on Tuesday showed that crude oil stocks in the US increased by 13.1 million barrels in the week ending April 10th, the barrel of West Texas Intermediate (WTI) continued to push lower. As of writing, the WTI was trading at $19.75, down 4.5% on the day. Later in the day, the Energy Information Administration’s (EIA) Weekly Petroleum Status Report will be watched closely by market participants.

Focus shifts to US data and BoC

Meanwhile, the sour market sentiment on Wednesday helps the USD find demand and recover the losses it suffered against its major peers. Ahead of Retail Sales and Industrial Production data from the US, the US Dollar Index is up 0.67% on the day at 99.52.

During the American session, the Bank of Canada will release its monetary policy statement and announce its interest rate decision. Previewing this event, “after such a busy March we expect the BoC to pause in April and do not expect any changes to the policy rate or other policy measures,” said Wells Fargo analysts. 

Technical levels to watch for