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  • USD/CAD pair continues to push lower in early American session.
  • US Dollar Index turned south following US data releases.
  • WTI clings to strong daily gains above $42.

The USD/CAD pair continued to push lower in the early American session and touched its lowest level in nearly a week at 1.3257. As of writing, the pair was down 0.3% on the day at 1.3260.

DXY struggles to hold above 93.50

A renewed selling pressure on the greenback allowed USD/CAD to extends its slide. The data published by the US Bureau of Labor Statistics showed on Wednesday that the core Consumer Price Index (CPI) rose from 1.2% to 1.6% in the US and surpassed analysts’ estimate of 1.1%. Furthermore, other data revealed that real average hourly earnings declined by 0.4% on a monthly basis in July.

Meanwhile, US Treasury Secretary Mnuchin reaffirmed that President Donald Trump would like to go ahead with a capital gain tax cut. This comment seemingly provided a boost to market sentiment and caused the USD to lose interest. At the moment, US Dollar Index lost is down 0.28% on the day at 93.38.

On the other hand, although the OPEC in its monthly report said that it was expecting the global oil demand to decline by 9.06 million in 2020, crude oil preserved its bullish momentum. With the barrel of West Texas Intermediate (WTI) gaining nearly 2% on the day at $42.40, the commodity-sensitive loonie gathered further strength against its rivals. Later in the session, the US Energy Information Administration’s weekly Crude Oil Stocks Change data will be watched closely by the market participants. 

Technical levels to watch for