- WTI consolidates weekly gains near the $56 mark.
- US Dollar Index continues to move sideways above 97.50.
- The pair is likely to remain quiet in the absence of macroeconomic data releases.
After dropping to its lowest level in three months at 1.3050 on Thursday, the USD/CAD pair has gone into a consolidation phase on Friday and is moving sideways in a tight range near the 1.3060 mark.
Although the Greenback gathered strength on Thursday supported by the demand shifting away from the GBP amid Brexit uncertainty and upbeat macroeconomic data releases from the United States (US), the bearish pressure on the pair remained intact.
The Markit Manufacturing Purchasing Managers’ Index (PMI) came in better than expected in October’s preliminary reading and helped the US dollar Index gain traction. The index, which rose to 97.78 on Thursday, was last down 0.07% on the day at 97.60.
Crude oil stages decisive rebound
Rising crude oil prices allowed the commodity-related Loonie to outperform its rivals. Heightened expectations of the OPEC+ introducing additional production cuts in December and falling crude oil stocks in the US fueled this week rally seen in the West Texas Intermediate (WTI) prices. The WTI is staying calm above the $56 mark on Friday, adding nearly 4.5% for the week.
There won’t be any significant macroeconomic data releases from Canada or the United States in the remainder of the day and the pair is likely to continue to react to changes in crude oil prices.
Technical levels to watch for
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