- USD / CAD tried to test last week’s highs at 1.2800 early in the session, but has since fallen back towards 1.2750.
- Oil prices retreated from their previous highs, making it difficult for the CAD to rebound from the ground it recently lost against the USD.
USD / CAD flirted with last Friday’s multi-week highs near 1.2800 in the previous trade, but the pair has since pulled back and is now trading around 1.2760 with very modest losses on the day of around 0.1%. That means the pair is near the center of its recent intraday ranges of 1.2730-1.2800, although it is still somewhat above last week’s lows below 1.2650. In short, the pair rallied over 1.0% last week as crude oil prices plunged amid fears about the impact the global spread of the Omicron Covid-19 variant would have on demand. In fact, all of those gains came last Friday along with WTI prices dropping nearly $ 10 below $ 70.00.
Oil prices tried to rebound on Monday, but as the US session progressed, oil prices gradually came under more selling pressure again. WTI almost rose to $ 73.00 before the US open, but has retraced below the $ 70.00 level and its 200 DMA again before the close.
There was some focus on the Canadian data at the beginning of the session; The Canadian current account in the third quarter of 2021, released at 13:30 GMT, was significantly weaker than expected at C $ 1.4 billion against expectations of C $ 4.6 billion, which weighed on the CAD by that moment. Price data for industrial products and raw materials was also released at 13:30 GMT. As usual, it did not move the markets, but the data is quite alarming. Commodity price inflation rose to 38.4% in October after a 4.8% month-on-month increase, while industrial producer price inflation stood at 16.7%, following a 1.3% increase in October. While both year-on-year inflation rates have been higher at other times during the year, they are both historically high.
Additional technical levels
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