- USD / CAD gained traction and rose above 1.3100 during the US session.
- The optimistic performance of crude oil helps the CAD limit its losses.
- Economic activity in the US private sector continued to expand in November.
After falling to the 1.3050 zone during European trading hours, the pair USD / CAD it reversed its direction and rose to a daily high of 1.3107. At time of writing, the pair is trading at 1.3098, where it is practically unchanged on the day.
Hours earlier, rising crude prices helped commodity-sensitive CAD gain traction against rivals. Backed by optimism that coronavirus vaccines will lead to a steady recovery in energy demand, a barrel of West Texas Intermediate (WTI) rose to its highest level in more than two months at $ 43.33. At time of writing, WTI is trading near $ 43, up 1.4% on the day.
DXY moves towards 93 after PMI data
On the other hand, the renewed strength of the USD allowed the USD / CAD to rise despite the optimistic performance of crude oil.
After data released by IHS Markit showed that business activity in both the manufacturing and service sectors in the US continued to expand at an impressive rate in November, the dollar began to outperform its rivals.
Backed by a 3% rise in the yield on 10-year US Treasuries, the US dollar index (DXY) spiked higher and touched a daily high of 92.80 after remaining stagnant around 92 for most of the day.
Later in the session, Toni Gravelle, Deputy Governor of the Bank of Canada (BoC) and San Francisco Federal Reserve Chair Mary Daly will deliver speeches.
Technical levels
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