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  • WTI drops below $52 for the first time in 10 days.
  • Negative market sentiment weighs on commodities on Thursday.
  • US Dollar Index stays quiet around mid-96s.

The USD/CAD pair advanced to its highest level since January 25 at 1.3319 as the commodity-related loonie met a renewed selling pressure amid the sharp drop seen in crude oil prices. As of writing, the pair was up 0.7% on the day a little below  1.3300.

Resurfacing concerns over the slowdown in the global economic growth today weighed on the market sentiment and hurt the demand for risk-sensitive commodities. Additionally, reports of U.S. President Trump not planning to meet his Chinese counterpart Xi before the March deadline reminded investors of the potential negative impact of the U.S. – China trade conflict on the oil demand outlook. At the moment, the barrel of West Texas Intermediate is losing nearly 3% on the day at $52.25.

Meanwhile, the dominating risk-off mood ramped up the demand for safe US Treasury Bonds and drove their yields lower to pull the US Dollar Index away from its daily highs, which keeps the pair’s gains capped for the moment. Nevertheless, the DXY remains on track to close the day modestly higher near 96.50.

On Friday, Statistics Canada will publish the employment data. Previewing the event, “We also look for a recovery in private sector job growth following last month’s rotation into self-employment. Job growth of 15k should leave the unemployment rate unchanged at the current cycle low of 5.6% while wage growth should firm modestly to 1.7% y/y, still well below levels associated with a tight labour market,” said TD Securities analysts in a recently published report.

Key technical levels


       Today Last Price:  1.3296
       Today Daily change %:  0.70%
       Today Daily Open:  1.3204
       Daily SMA20:  1.324
       Daily SMA50:  1.3367
       Daily SMA100:  1.3223
       Daily SMA200:  1.3133
       Previous Daily High:  1.321
       Previous Daily Low:  1.3124
       Previous Weekly High:  1.3287
       Previous Weekly Low:  1.3069
       Previous Monthly High:  1.3664
       Previous Monthly Low:  1.3118
       Daily Fibonacci 38.2%:  1.3177
       Daily Fibonacci 61.8%:  1.3157
       Daily Pivot Point S1:  1.3149
       Daily Pivot Point S2:  1.3094
       Daily Pivot Point S3:  1.3064
       Daily Pivot Point R1:  1.3234
       Daily Pivot Point R2:  1.3264
       Daily Pivot Point R3:  1.3319