USD/CAD continues to trade below 1.3050 despite broad USD strength
- Retai sales in June grows more than expected in US.
- US Dollar Index climbs to daily highs above 97.30.
- WTI rebounds following Monday's technical drop, adds more than 1% on the day.
The USD/CAD pair failed to capitalize on the upbeat retail sales data from the United States and continues to trade in the negative territory. As of writing, the pair was down 0.09% on a daily basis at 1.3038.
The U.S. Census Bureau today reported that retail sales in June grew by 0.4% on a monthly basis to match May's reading and beat analysts' estimate of 0.1%. Boosted by the upbeat data, the US Dollar Index pushed higher and extended its daily rally to 97.33 to erase last week's losses.
Meanwhile, the data from Canada showed that foreign portfolio investment in Canadian securities in May increased to $10.2 billion after falling by -$12.79 billion in April.
However, rising crude oil prices today helped the commodity-sensitive loonie stay strong against its major rivals. Ahead of the weekly API crude oil stock data later in the day, the barrel of West Texas Intermediate is trading near the critical $60 handle, adding a little more than 1% on the day.
Later in the day, markets will be paying close attention to FOMC Chairman Powell's remarks for fresh hints regarding the monetary policy outlook.
Technical levels to watch for