USD/CAD: Canadian dollar rises to 1.3045 on oil price rebound

FXStreet (Mumbai) - The Canadian dollar managed to wipe-out a portion of yesterday’s losses versus its American counterpart during the European session, sending USD/CAD to fresh session lows below 1.3050 levels highs as weaker greenback paired with rebounding oil prices boosted the loonie.

USD/CAD drops 1 big figure

Currently, the USD/CAD pair trades -0.53% lower at fresh session lows of 1.3043, dropping more than 100 pips from 1.3158 highs. The Canadian dollar stages a solid come back versus the US dollar rising along with higher oil prices.

Oil prices in the US rallied over 1% to 43.56 on Wednesday as markets continued to cheer the latest IEA forecasts that revealed the global oil demand is forecast to rise at its fastest pace in 5 yrs in 2016.
More so, a broadly weaker greenback also supported the gains in the black gold, eventually benefitting the resource-linked loonie as well. Oil is Canada’s top export product.

Looking ahead, the pair is likely to get influenced by the upcoming US macro releases including the US jobs data due to be reported later in the day.

USD/CAD Technical Levels

To the upside, the next resistance is located at 1.3095 (July 31 High) levels and above which it could extend gains to 1.3158 (Today’s High). To the downside, immediate support might be located at 1.2991 (Aug 11 Low) levels and below that at 1.2940 (July 31 Low).

US Dollar off lows, back to 96.60

The greenback, gauged by the US Dollar Index, is markedly lower on Wednesday, extending the drop to the 96.60 area after bottoming out near 96.40...
আরও পড়ুন Previous

NZD/USD: sell on strength – JPM Asia

Analyst James Struik at JP Morgan Asia sees the area around 0.6630 as a good opportunity to sell the pair...
আরও পড়ুন Next