- USD/CAD gains ground as Crude oil prices decline.
- WTI price falls on Saudi’s price cuts and OPEC+ oil output increase.
- US Dollar remains silent amid improved risk appetite.
USD/CAD continues to gain ground for the second straight day, trading near 1.3380 during the European session on Monday. The Canadian Dollar (CAD) receives downward pressure against the US Dollar (USD) due to the decline in Crude oil prices.
West Texas Intermediate (WTI) price undergoes a retracement of its recent gains, trading lower near $73.00 per barrel, by the press time. The decline in Crude oil prices is attributed to a combination of factors, including price cuts by top exporter Saudi Arabia. Additionally, a rise in the Organization of the Petroleum Exporting Countries and its allies (OPEC+) oil output is contributing to the downward pressure on oil prices.
The US Dollar Index (DXY) remains silent near 102.40 with a negative bias, potentially influenced by the improved risk appetite after the mixed US economic data released on Friday.
US Nonfarm Payrolls (NFP) rose to 216K in December, showing improvement from the 173K reported in November and surpassing the market expectation of a rise to 170K. Additionally, Average Hourly Earnings (Year-over-Year) improved to 4.1% from the previous figure of 4.0%. The monthly index remained consistent at 0.4%, defying the expected decline of 0.3%. These positive developments reflect a robust performance in employment and wage growth, providing insights into the health of the US labor market.
In contrast to the positive developments in the job market, the Institute for Supply Management (ISM) reported a slowdown in the services sector for the same month. The Services Purchasing Managers Index (PMI) came in at 50.6, falling below the expected 52.6 and the previous figure of 52.7. This data indicates a deceleration in the services sector, raising considerations about the overall economic activity in that particular segment.
The mixed signals from different economic indicators underscore the complexity of assessing the overall health of the economy, and traders will likely eye the upcoming Consumer Price Index data on Thursday to gain more clarity on the US economic scenario.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.