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  • USD/CAD is falling toward 1.3000 during American session. 
  • WTI trades at its highest level since March near $45.
  • US Dollar Index retreats below 92.50 as US stocks push higher.

The USD/CAD pair rose to a daily high of 1.3090 in the early American session but made a sharp U-turn as surging crude oil prices provided a boost to the commodity-related loonie. As of writing, the pair was down 0.45% on the day at 1.3020 and was within a touching distance of the two-week low it set at 1.3010 earlier in the day.

The rising US Treasury bond yields helped the US Dollar Index to stage a rebound on Tuesday. However, the impressive rally witnessed in Wall Street’s main indexes made it difficult for the greenback to preserve its strength. At the moment, both the S&P 500 and the Dow Jones Industrial Average are up around 1.5% and the US Dollar Index is losing 0.2% at 92.31.

Oil rally remains intact

On the other hand, fueled by heightened optimism for a steady recovery in global energy demand amid positive developments surrounding coronavirus vaccines, crude oil prices continue to push higher. After closing the previous four days in the positive territory, the barrel of West Texas Intermediate climbed to its highest level since March at $45.17 and was last seen trading at $44.95, where it was up nearly 5% on a daily basis.

On Wednesday, investors will keep a close eye on high-impact macroeconomic data releases from the US. Ahead of the Thanksgiving holiday, Durable Goods Orders, Q3 Gross Domestic Product, Goods Trade Balance, Initial Jobless Claims, New Home Sales and UoM Consumer Sentiment Index will be featured in the US economic docket. Later in the day, the FOMC will release the minutes of its November meeting. 

Technical levels to watch for

 

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