USD/CAD slumps to fresh weekly highs, closes in on 1.3300

• USD/CAD broke below its weekly range during the American session.
• US Dollar Index slumped below 94.00 pressured by month-end flows.
• Rising crude oil prices help CAD gather strength against its rivals.

The USD/CAD pair came under heavy bearish pressure during the American trading hours on Wednesday and touched a fresh weekly low of 1.3315. As of writing, the pair was down 0.45% on a daily basis at 1.3325.

DXY turns south amid month-end flows

A new USD-selling wave hit the markets in the last hour. The fact that there were no clear catalysts behind the USD weakness suggests that month-end flows came into play toward the end of London trading. At the moment, the US Dollar Index (DXY), which tracks the greenback’s performance against a basket of six major currencies, is down 0.16% on the day at 93.72.

Meanwhile, the upbeat market mood, as reflected by the strong gains witnessed in Wall Street’s main indexes, is helping risk-sensitive crude oil prices traction. With the barrel of West Texas Intermediate (WTI) rising nearly 1.5% at $39.65, the commodity-related loonie is preserving its strength against its rivals.

Earlier in the day, the data published by Statistics Canada showed that the Canadian economy expanded by 3% on a monthly basis in July as expected. 

On the other hand, the US Bureau of Economic Analysis third estimate revealed that the real Gross Domestic Product (GDP) in the second quarter contracted by 31.4%. Moreover, the Automatic Data Processing (ADP) Research Institue reported that private sector employment in September rose by 749,000, compared to analysts’ estimate of 650,000. 

Technical levels to watch for