USD/CAD stays in the negative territory below 1.2600 amid rising crude oil prices

  • USD/CAD edges lower after rising to two-week highs on Thursday.
  • Surging crude oil prices provide a boost to CAD on Friday.
  • US Dollar Index stays calm below 93.00 ahead of US data releases.

The USD/CAD pair advanced to its highest level in two weeks at 1.2630 on Thursday but reversed its direction on Friday. As of writing, the pair was down 0.25% on a daily basis at 1.2580.

WTI reclaims $60 on Friday

Rising crude oil prices ahead of the weekend seems to be providing a boost to the commodity-related loonie. Following a 4% decline on Thursday, the barrel of West Texas Intermediate is staging a decisive recovery and was last seen gaining 3.1% on the day at $60.15.

On the other hand, the US Dollar Index (DXY) is staying relatively quiet after Thursday’s rally that was fueled by the upbeat macroeconomic data releases. Nevertheless, a more-than-2% increase witnessed in the 10-year US Treasury bond yield is helping the greenback find demand and keeping USD/CAD’s downside limited for the time being.

Later in the session, the US Bureau of Economic Analysis will release the Personal Spending, Personal Income and Personal Consumption Expenditures (PCE) Price Index data for February. 

Meanwhile, the S&P 500 Futures are posting small daily gains, suggesting that the risk flows could make it difficult for the USD to gather additional strength in the second half of the day. 

Technical levels to watch for

 

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