- Crude oil sell-off continues on Friday to weigh on the loonie.
- PPI in the U.S. rises more than expected in October in the U.S.
- US Dollar Index clings to gains above 96.50.
With the greenback preserving its bullish momentum in the second half of the day, the USD/CAD pair rose above the 1.32 mark for the first since early September on Friday. As of writing, the pair was trading at 1.3197, adding 0.32% on a daily basis.
Today’s data from the U.S. showed that the PPI rose 2.9% on a yearly basis in October following September’s 2.6% growth and surpassed the market expectation of 2.5%. On the back of the PPI figures, the US Dollar Index stayed in the upper half of its daily range to show that the dollar stayed strong against its rivals. As of writing, the DXY was up 0.17% on the day at 96.80.
In addition to the strong USD demand, the commodity-sensitive loonie suffered losses due to crude oil sell-off and allowed the pair to extend its rally. Concerns over global economic outlook and rising supply, the barrel of West Texas Intermediate broke below the $60 mark for the first time in more than 8 months and was last seen trading at $59.50, where it was down around 2% on the day. Later in the session, Baker Hughes energy services will publish the number of active oil rigs in the U.S.
Technical levels to consider
With a weekly close above 1.3200 (daily high/psychological level), the pair could target 1.3225 (Sep. 6 high) and 1.3290 (Jul. 19 high). On the downside, supports are located at 1.3110 (20-DMA), 1.3045 (100-DMA) and 1.2990 (200-DMA).
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