- WTI rises to best level in nearly two weeks on latest trade headlines.
- USTR announces decision to delay tariffs on some Chinese imports.
- US Dollar Index pushes higher, limiting pair’s losses.
The USD/CAD pair came under strong bearish pressure as the commodity-related Loonie gathered strength on the back of surging crude oil prices. After slumping to a weekly low of 1.3184, however, the pair reversed its course and was last seen trading at 1.3228, still down 0.08% on the day.
The US Trade Representative’s office today published a list of Chinese products that will be exempt from the 10% additional tariffs until December 15 in a bid to work toward a trade deal with China ahead of next months high-level talks in Washington.
With the concerns over a dismal global oil demand outlook easing on this development, the barrel of West Texas Intermediate rose sharply and was last up 3.7% on the day at $56.77, ramping up the demand for oil exporter Canada’s currency.
Rising T-bond yields support USD
However, the improved market sentiment also caused the US Treasury bond yields to stage a decisive rally and helped the Greenback stay strong against its major rivals. The US Dollar Index, which spent a large portion of the day below 97.50, advanced to 97.80 and didn’t allow the pair to push lower.
Meanwhile, the only data from the US today showed that inflation, as measured by the core Consumer Price Index (CPI), ticked up to 2.2% to surpass the market expectation of 2.1%.
Technical levels to watch for