- Loonie rises across the board during the American session.
- WTI soars 4.50% supporting CAD and boosting Wall Street.
- US dollar under pressure after US economic data.
The USD/CAD tumbled to 1.2704 during the American session on the back of a rally in crude oil prices and amid a weaker US dollar. Also, a rebound in equity prices helped the move lower.
WTI soars almost 5%
The barrel of West Texas Intermediate (WTI) jumped reaching levels above $47.50, the highest in months. It is by 4.40%. The rally also boosted equity prices in Wall Street. Main indexes turned positive. The Dow Jones is falling by just 0.05% while Nasdaq rises by 0.70%.
Economic data from the US came in below expectations. Initial Jobless Claims jumped to 853K, the highest level in ten weeks. Analysts were expecting a modest decline. The greenback lost momentum, and the European Central Bank meeting added more pressure.
The DXY fell to 90.64, the weakest level in six days before trimming losses. It is hovering around 90.85, after being unable to hold above 91.00.
The loonie gained momentum and is among the top performers of the American session. The breakout below the key short-term support at 1.2760/65 added pressure to the downside. Now 1.2700/10 is the next barrier.
Technical levels
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