- USD / CAD is hovering in a range around 1.2400 on Thursday, sideways.
- Rising oil propped up the loonie.
- The dollar remains relatively strong, helping to limit downward corrections.
The USD / CAD extended the short-term consolidation tone around 1.2400. It peaked at 1.2415 and lowered at 1.2385, and remains in between these extremes, biased upward as the dollar continues to be strong.
A combination of diverging forces did not provide any significant momentum. The recent bullish streak in oil prices continued to prop up the loonie and limited USD / CAD gains. On the other hand, a modest strength in the US dollar extended some support and helped limit the weakness.
The dollar It rose to the highest level since April amid speculation that the Federal Reserve will tighten its monetary policy if price pressures continue to intensify. Expectations were strengthened by the comments of the chairman of the Dallas Federal Reserve, Robert Kaplan, who stated that he prefers to discuss cuts in the purchasing program before the end of the year. Apart from this, a strong rally in US Treasury yields also acted as a tailwind for the greenback.
Important US data will be released on Thursday. such as the manufacturing ISM and unemployment benefit claims. This will serve as a preliminary to the official employment report on Friday. Another focus of attention will be in the headlines coming out of the meeting of the Organization of Petroleum Exporting Countries and its allies (OPEC +).
Technical levels
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