USD/CAD hovers above C$1.25 amid stabilizing oil, positive US and Canadian data
- The USD/CAD is trading above C$1.2500, higher on the day.
- Oil prices have stabilized after dropping earlier today.
- Positive data from both the US and Canada, as well as stability in stock markets maintain the balance.
The USD/CAD is trading around $1.2520 at the time of writing. The pair hit a high of $1.2537, up from the low point of $1.2465 earlier in the day.
Mostly positive data from the US and Canada
The ADP jobs report for Canada showed a gain of 10,700 positions in January, contradicting the official jobs report which showed a loss of around 88,000 jobs.
In the US, the Producer Price Index rose by 2.7% YoY, and Core PPI is up 2.7% YoY in January, both above early estimations. On the other hand, Industrial Output dropped by 0.1%, worse than an increase of 0.2% that was projected.
Later today, Bank of Canada Deputy Governor Lawrence Schembri will deliver a speech. On Friday, Canada releases the Manufacturing Shipments reports and the Portfolio Investment data. The US publishes Housing Starts, Building Permits, and the University of Michigan's Consumer Sentiment Index.
Recovering oil, steady stocks
Oil prices have recovered, with WTI Crude Oil regaining the $60.00 level after falling to lower ground beforehand. Russia and the Organization of the Petroleum Exporting Countries (OPEC) are reportedly working on a long-term agreement. The news is positive for the Canadian Dollar. Earlier, the price dropped from a high of $61.52 to $59.70.
Share prices are high on Wall Street but have receded to nearly balanced levels. The fall provides some support for the US Dollar. On the other hand, US 10-Year Treasury Bond Yields have dropped.
USD/CAD Technical Levels
The USD/CAD faces resistance at $1.2646 (Feb. 14 high), $1.2688 (Feb. 9 high) and $1.2720 (December 14th low). Support may be found at $1.2465 (today's low), $1.2400 (support during January) and 1.2249 (low of 2018, seen on Feb. 1).