- The USD is losing ground to the CAD, which is recovering after a slip on rising US oil supplies.
- Left to its own devices, the Greenback is stepping down against the Loonie, but expected oil pressures could see the pair continue lifting.
The USD/CAD is falling back into 1.3115 ahead of Thursday’s London market session after leaking at 1.3175 yesterday. Wednesday saw the USD/CAD mark in a new high for August, but the Dollar still remains under June and July’s peaks against the Loonie.
Crude oil prices tumbled on Wednesday after Energy Information Administration (EIA) info showed that US crude stocks are rising at a much faster pace than expected, and WTI barrels declined below $65, dragging the CAD down with it. The USD has resumed giving up ground to the CAD, though crude oil prices can be expected to continue sliding as demand for crude oil is expected to begin declining, which will see US reserves pile up at a much faster rate than most are prepared for.
USD/CAD levels to watch
The current action is capped off at 1.3175, with further resistance from late July’s peak of 1.3190, while this week’s low will act as support from 1.3050 with further support from last week’s bottom at 1.2960.
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