- The US dollar strengthens against commodity currencies as stocks and crude oil slide.
- USD / CAD extends gains during the US session, the upside is still seen as corrective.
The USD / CAD it is rising Thursday after posting the lowest daily close since early July on Wednesday. The pair bottomed at 1.2288 in Asian hours and then bounced higher. During the US session, it touched a new daily high at 1.2353 and then fell back to 1.2345.
The USD / CAD main trend continues to point lower and the current bullish move could be seen as corrective. The pair needs a daily close below 1.2300 to suggest that the bears are still in control.
The US dollar maintains daily gains across the board except against the Japanese yen. The DXY is up 0.03%, ending a six-day negative streak. Higher US yields and deteriorating market sentiment helped the dollar. USD / CAD also finds support in a correction in crude oil prices. The WTI barrel is retreating from multi-year highs and is trading below $ 81.00.
US economic data showed a decline in initial jobless claims to the lowest level since March 2020 below 300,000. On the negative front, the Philadelphia Fed fell from 30.7 to 23.8 (consensus: 25). Existing home sales rebounded more than expected by 7% in September. Home prices rose 0.4% in September in Canada.
On Friday, Markit’s preliminary US and Canadian PMI, August retail sales report with preliminary figures for September will be released.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
