USD / CAD on track to post highest daily close in a month near 1.3350

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  • USD / CAD appears to be closing for the second day in a row in positive territory.
  • The US Dollar Index updated monthly highs above 94.00.
  • WTI is trading deep in bearish numbers near $ 36.

The pair USD / CAD It advanced to its highest level in a month at 1.3389 on Thursday, but wiped out a portion of its daily earnings during US business hours. At time of writing, the pair was up 0.23% on the day at 1.3352. However, despite this pullback, USD / CAD remains on track to post its highest daily close since September 29.

The massive sale of oil continues

A strong broad-based USD and strong selling pressure surrounding crude oil provided a boost to USD / CAD for the second day in a row on Thursday.

Pressed by concerns about the negative impact of the growing number of coronavirus cases globally causing an uneven recovery in energy demand, a barrel of West Texas Intermediate (WTI) fell to a multi-month low of $ 34.91. At the moment, the WTI is down 3.83% on the day at $ 35.92.

On the other hand, the poor performance of the main European currencies, especially the euro, helped the dollar to continue to gain strength. The US dollar index, which closed the first three days of the week in positive territory, is currently trading at fresh October highs at 94.07, up 0.68% on the day. However, the CAD also appears to have taken advantage of the euro’s sell-off with the EUR / CAD closing the day down 0.5%.

Hours earlier, data released by the US Bureau of Economic Analysis revealed that real GDP in the US grew 33.1% (early estimate) on an annual basis in the third quarter. Although this reading helped improve market sentiment, the USD had no difficulty maintaining its strength.

Credits: Forex Street

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