- USD/CAD rises on Friday but remains in recent range.
- Oil loses steam as equity markets trim gains.
- The dollar recovers ground, but not firmness.
The USD/CAD is rising on Friday and the 1.3755 resistance zone is approaching, in the face of a general strengthening of the dollar and after the recovery of the equity markets loses momentum.
Hours ago, the pair fell to 1.3657, the daily low, and then reversed its intraday trend. It is trading at 1.3742, the high of the day and keeping a close eye on Thursday’s high in the 1.3750/55 area, which is a major resistance that if broken would enable further rally. The next resistance is at 1.3800.
The USD/CAD continues to move sideways between the aforementioned 1.3755 and a floor at 1.3650. A break below the latter level would expose 1.3600, Wednesday’s low.
Friday’s rise is being driven by a general advance of the dollar in the market. The DXY climbs 0.55% after two days with sharp falls. The advance looks moderate in the face of a new rise in sovereign bonds and a drop in the price of oil. The Barrel of WTI could not sustain itself in positive territory and falls 0.95%, approaching $80.00, even despite speculation with a cut in production of between 500,000 and one million barrels by the Organization of Petroleum and Exporting Countries. allies.
Thursday in Canada a GDP expansion of 0.1% was known in July against the expectation that it was for a contraction of 0.1% and repeated the performance of June. On the downside, preliminary data points to a stagnation in August.
In the US, the personal income and spending report will be released on Friday, which includes the underlying price index for personal consumption spending. The latter is a measure of inflation closely watched by Federal Reserve officials. In addition, the Chicago PMI for September and the final consumer confidence report for September from the University of Michigan will be published.
Technical levels
Source: Fx Street
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