USD/CAD struggles to make a recovery

6 June, 2019

US Dollar Index stays calm above the 97 mark. WTI tries to retrace Wednesday's sharp drop. Coming up: Trade balance data from both Canada and the U.S.

Following a fall to a fresh 2-week low of 1.3360 on Wednesday, the USD/CAD pair turned north with crude oil prices coming under intense selling pressure and closed the day at 1.3422. Ahead of today's macroeconomic data releases from the U.S. and Canada, the US Dollar to Canadian Dollar exchange rate is consolidating yesterday's gains above the 1.34 mark.

The weekly data published by the EIA yesterday showed that crude oil stockpiles in the U.S. increased by 6.8 million barrels in the week ending May 31 and caused the barrel of WTI to fall to its lowest level since early January at $50.60 to weigh on the commodity-sensitive loonie. The fact that the WTI posts small recovery gains a little below $52 on Thursday helps the CAD stay resilient against the buck.

In the second half of the day, trade balance data and Ivey PMI reports from Canada will be looked upon for fresh impetus. On the other hand, the U.S. economic docket will feature the weekly jobless claims data alongside trade balance figures and speeches by FOMC members Kaplan and Williams. Ahead of these events, the US Dollar Index is posting small daily losses at 97.25.


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