- USD / CAD is trading lower during US trading hours.
- The US Dollar Index remains in negative territory after US data.
- The modest rise in crude oil prices provides a boost to the CAD.
Following a consolidation phase above 1.2300 during European trading hours, the pair USD / CAD it lost its traction and fell to a new daily low of 1.2270. At time of writing, the pair was up 0.33% on the day at 1.2284.
DXY seeks to break a four-week winning streak
Widespread USD weakness ahead of the weekend appears to be causing the pair to extend its decline in the US session.
Data released by the US Bureau of Economic Analysis on Friday showed that the annual Core Personal Consumption Spending Price Index (PCE) rose to 3.4% in May from 3.1% in April. Although this figure was in line with market expectations, the dollar struggled to attract investors. At time of writing, the US Dollar Index (DXY) was down 0.16% on the day to 91.66. On a weekly basis, the DXY lost 0.7%.
Meanwhile, the University of Michigan Consumer Confidence Index modestly improved to 85.5 (final) in June from 82.9, but did not help the dollar find demand.
On the other hand, a barrel of West Texas Intermediate (WTI) rose 0.5+ on the day to $ 73.70, allowing the commodity-sensitive Canadian dollar to outperform its US counterpart. Later in the day, Banker Hughes’ weekly US oil rig count data will be analyzed for fresh momentum.
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.
