USD / CAD rises to six-day highs above 1.3170

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  • USD / CAD is moving higher on renewed demand for the safe haven US dollar.
  • WTI consolidates Wednesday’s 2% move.
  • The focus is on US labor data.

The pair USD / CAD moves higher during Thursday’s European session and rises to new 6-day highs above the 1.3170 level, looking to extend its three-day recovery from the five-week lows of 1.3097 reached on Tuesday.

The bulls stay in control and extend recovery following resurgence in US dollar demand Across the board as investors head for the safe haven amid diminishing hopes for a U.S. fiscal stimulus package.

Stock markets fell and the US dollar strengthened the day before after Treasury Secretary Steve Mnuchin explicitly said that a tax deal before the November 3 elections is difficult.

However, the pair’s gains may be limited by the 2% rally in US oil. WTI surpassed the $ 41 level on Thursday after OPEC and its allies (OPEC +) reportedly complied with oil production cuts in September. Meanwhile, a larger-than-expected drop in US crude reserves has also contributed to the rise in oil, in turn offering some support to the Canadian dollar, a currency tied to commodity prices.

During today’s American session, weekly US jobless claims will continue to be the focus of attention for further signs of the recovery in the US job market. Meanwhile, ADP’s Canadian employment data, sentiment on Wall Street, and Bank of Canada Deputy Governor Timothy Lane’s speech could also generate new opportunities in the USD / CAD pair in the near term.

Credits: Forex Street

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