USD / CAD Falls Below 1.2850 as Stocks and Crude Oil Prices Rise
- The Canadian dollar strengthens against the US dollar due to risk appetite.
- The USD / CAD falls for the second day in a row and turns negative for the current week.
USD / CAD accelerated lower during the US session as US stocks rose further and amid a rally in crude oil prices. The pair fell to 1.2840, hitting the lowest level since Friday. It remains close to the lowest, under pressure.
On the downside, the 1.2835 region appears as the next support, followed by 1.2800. The 1.2865 level has now become immediate resistance.
WTI on the rise, Wall Street green
The Dow Jones rose 0.50% and the Nasdaq gained 0.71%. WTI per barrel is up nearly 1%, hovering around 71.60%. Improving risk sentiment, combined with a slight drop in US yields, is keeping the US dollar under pressure.
Economic data from the United States showed that the US economy grew at a rate of 2.3% during the third quarter, above the 2.1% previously reported. The Conference Board’s consumer confidence index climbed to 115.8 in December from 111.9 the previous month. The dollar did not benefit from the numbers. The key day for economic data will be Thursday. IN the USA, the Core CPE and jobless claims figures are expected.
In Canada, GDP figures are due. “GDP is expected to print slightly below flash estimates at 0.7% in October, with a strong performance in goods and services. Manufacturing (autos) and energy will help pull the top, while services should experience Slightly weaker growth. A 0.7% impression bodes well for the fourth quarter, but we will also be watching for new flash estimates for a glimpse into November and the early impact of the BC flooding, ”said TD Securities analysts said.