- Crude oil recovery loses momentum, WTI floats near $57.
- US Dollar Index continues to fluctuate in tight range below 97.
- Coming up: Employment data from both Canada and the U.S. on Friday.
Following Monday’s recovery, the USD/CAD pair posted losses on Tuesday and Wednesday and touched its lowest level of 2019 at 1.3053. With the trading action turning subdues on Thursday, the pair staged a technical recovery and was last seen trading at 1.3070, adding 0.15% on a daily basis.
Despite the greenback’s broad-based strength earlier this week, the commodity-sensitive loonie took advantage of rising crude oil prices and weighed on the pair. However, with the oil recovery losing its momentum today and the barrel of West Texas Intermediate retreating to $57 area, the pair rebounded from lows.
Moreover, the choppy trading action amid the Independence Day holiday paved the way for a technical correction in the pair.
On Friday, employment data from both Canada and the United States will be looked upon for fresh impetus. Previewing the NFP report, “The biggest issue is whether nonfarm’s disappointment in May (+75k) was a flash in the pan or something that portends ongoing or intensifying weakness,” Scotiabank analysts said.
“If it bounces higher, then it would be partial evidence to give the Fed some breathing room; by corollary, another disappointment would likely spook the Fed. Decided to go with +100k for nonfarm payroll.”
Technical levels to watch for
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