USD/CAD stays directionless below 1.3300 ahead of key data releases

• WTI consolidates 2-day rally, trades above $58 on Friday.
• US Dollar Index stays calm near 98 following Thursday’s rebound.
• Coming up: Retail Sales data from Canada and Markit PMI reports from US.

The USD/CAD pair failed to hold above the 1.3300 mark on Thursday as rising crude oil prices and Bank of Canada Governor Poloz’s hawkish remarks allowed the loonie to gather strength against its rivals. With investors moving to the sidelines ahead of macroeconomic data releases from Canada and the United States (US) later in the day, the pair is staying flat on the day near the 1.3280 handle.

Hopes of the Organization of the Petroleum Exporting Countries (OPEC) extending the production cuts for six more months at the group’s December meeting provided a boost to crude oil prices in the second half of the week. The barrel of West Texas Intermediate (WTI) advanced to its highest level in nearly two months at $58.65 on Thursday before going into a consolidation phase. As of writing, the WTI was virtually unchanged on the day at $58.35.

USD stays quiet ahead of mid-tier data

On the other hand, the better-than-expected Existing Hom Sales and Philly Fed Manufacturing Index data from the US on Thursday helped the US Dollar Index to recover to the 98 area and kept the pair’s losses limited.

Later in the day, the preliminary Markit Manufacturing and Services Purchasing Managers’ Index (PMI) reports and the University of Michigan’ final version of its Consumer Sentiment Survey for November will be released from the US. Additionally, the Retail Sales data from Canada will be looked upon for fresh impetus.  

Technical levels to watch for