- USD/CAD extended its daily rally in the American session.
- WTI turned positive on the day above $87 following the OPEC+ decision.
- DXY rose more than 1% on the day after the US data.
USD/CAD maintained its bullish momentum in the second half of the day and hit a daily high of 1.3696 before dipping slightly. At the time of writing, the pair was up 1.2% on the day to hit 1.3670.
Crude oil price rebound
Crude oil prices gained ground during US trading hours and a barrel of Asese Intermediate (WTI), which spent much of the day in negative territory, rose above $87. News confirming OPEC+’s decision to cut the group’s production by 2 million barrels per day boosted WTI. Additionally, the EIA reported a larger-than-expected decline in US crude oil values in the week ending September 30.
However, dollar strength dominated USD/CAD action after encouraging data from the US. The Dollar Index was last up 1.2% on the day at 111.55.
The ADP announced that private sector employment increased by 208,000 people in September, above analysts’ estimate of 200,000. In addition, the Employment component of the ISM Services PMI survey rose to 53 from 50.2, revealing that service sector employment expanded at a stronger pace in September than in August.
Following this data, the probability of a 75 basis point rate hike in November rose above 70%, suggesting that the Fed’s hawkish bets are driving market action.
On Friday, market participants will closely monitor the September employment reports from the United States and Canada.
Technical levels to consider
Source: Fx Street
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