USD/CAD climbs to April highs above 1.34 on broad USD strength
- US Dollar Index approaches 2019 tops.
- WTI erases early gains, turns flat on the day below $66.
- Data shows wholesale sales in Canada increased more than expected in February.
The USD/CAD pair gained traction in the last hour and rose to its highest level since the last week of March at 1.3413. As of writing, the pair was up 0.47% on the day at 1.3409.
Earlier today, the commodity-sensitive loonie was able to show resilience against the dollar with crude oil prices gaining traction on the U.S. announcement to end the issuance of waivers for Iran oil imports. The barrel of West Texas Intermediate climbed to its highest level of the year at $66.17 but struggled to preserve its momentum. With Saudi Arabia reportedly looking to ramp up its production in response to the U.S. action, the WTI retraced its gains and turned flat on the day near $65.70.
- Gulf OPEC producers to raise oil output if there is enough demand - Reuters.
On the other hand, after making a modest technical correction on Friday and yesterday, the US Dollar Index extended its rally and rose to its highest level since early March at 97.70 to cause the pair to push higher. At the moment, the DXY is up 0.4% on the day at 97.67.
The only data from the U.S. today showed that the Federal Housing Finance Agency's Housing Price Index rose 0.3% in February to match the market expectation. On the other hand, wholesale sales in Canada increased by 0.3% in February to surpass the analysts' estimate of 0.1%.
Technical levels to consider