USD/CAD slumps to multi-week lows below 1.3170 on broad USD weakness
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USD/CAD slumps to multi-week lows below 1.3170 on broad USD weakness

  • The US Dollar Index extends slide on Thursday.
  • Crude oil prices stay relatively quiet ahead of weekly inventory data from the United States (US).
  • Manufacturing sales in Canada is expected to expand by 0.6% in August.

After closing the previous day virtually unchanged near the 1.32 handle, the USD/CAD pair came under renewed bearish pressure and fell to its lowest level in five weeks at 1.3157 before rebounding modestly. As of writing, the pair was trading at 1.3173, erasing 0.22% on a daily basis.

USD struggles to find demand

The broad-based USD weakness on Thursday seems to be driving the pair’s market action. Although there were no fundamental developments impacting the Greenback’s market valuation directly, the decisive gains seen in major European currencies, especially the British Pound, following the announcement of a Brexit deal hurt the demand for the USD.

The US Dollar Index, which closed the previous two days in the negative territory and slumped to its lowest level since late August at 97.50 earlier in the day, was last down 0.3% on the day at 97.70.

Later in the session, manufacturing shipments and ADP private-sector employment data from Canada will be looked upon for fresh impetus. The US economic docket will feature housing starts, building permits, and weekly jobless claims figures.

Meanwhile, crude oil prices stay resilient supported by the upbeat market sentiment on Thursday and help the commodity-related Loonie preserve its strength. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $53.10, adding 0.25% on the day. The Energy Information Administration’s  (EIA) weekly crude oil stock report could be the next catalyst on the WTI.

Technical levels to watch for


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