“¢ The USD remains supported by the overnight release of FOMC meeting minutes.
“¢ The ongoing slump in Oil prices undermine Loonie and provided an additional boost.
The USD/CAD pair continued scaling higher through the mid-European session and is currently placed at fresh weekly tops, around the 1.3475 region.
The pair built on the overnight sharp rebound from one-month lows, with a combination of supporting factors fueling the ongoing positive momentum for the second consecutive session on Thursday.
The US Dollar stood tall near two-year highs, above the 98.00 handle, and remained supported by the latest FOMC meeting minutes, which dampened prospects for an interest rate cuts in the near future.
This coupled with a strong follow-through weakness in Crude Oil prices further undermined demand for the commodity-linked currency – Loonie and provided an additional boost to the major.
Oil prices extended falls from the previous session and dropped nearly 1.5% on Thursday in wake of surging US inventories, which rose to their highest levels since July 2017 due to weak demand from refineries.
It, however, remains to be seen if bulls are able to capitalize on the positive momentum or the pair continues with its struggle to sustain/build on the momentum further beyond the key 1.3500 psychological mark.
Thursday’s economic docket – featuring the second-tier releases of Canadian wholesale sales data along with flash manufacturing/services PMI and new home sales data from the US, will now be looked upon for some impetus.
Technical levels to watch