- WTI erases more than 8% on Friday, sumps to fresh multi-year lows.
- OPEC+ fails to agree on additional output cuts or an extension.
- Broad-based USD weakness despite upbeat NFP data caps pair's gains.
The USD/CAD pair, once again, ignored the heavy selling pressure surrounding the USD and edged higher on Friday as the plummeting crude oil prices made it difficult for the commodity-sensitive CAD to find demand. As of writing, the pair was trading at 1.3420, a little below the daily high that it set at 1.3439 during the American session, adding 0.12% on the day.
At the highly-anticipated meeting in Vienna on Friday, OPEC and non-OPEC oil producers have failed to reach agreement on additional output cuts or an extension to existing production curbs to trigger a fresh oil selloff. The barrel of West Texas Intermediate was last seen trading at its lowest level since August of 2016 at $42.10, erasing 8.5% on the day.
USD struggles to capitalize on NFP data
On the other hand, the 10-year US Treasury bond yield fell to new all-time lows by erasing more than 20% on Friday and didn't allow the greenback to find demand despite the upbeat labour market data.
In February, Nonfarm Payrolls in the US increased by 273K to beat the market expectation of 175K by a wide margin and the Unemployment Rate fell to 3.5%. Nevertheless, the US Dollar Index (DXY) broke below the 96 mark and fell to its lowest level in nearly a year at 95.71 before rebounding modestly. At the moment, the DXY is down 0.63% on the day at 96 and is erasing more than 2% for the week.
Technical levels to watch for
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
AUD/USD holds higher ground near 0.6600 after strong China's Caixin Services PMI
AUD/USD holds higher ground near the 0.6600 mark early Tuesday. Strong China's Caixin Services PMI data for October underpins the Aussie amid a modest US Dollar uptick and a tepid risk tone. Traders remain reluctant ahead of the RBA policy decision and the US presidential election.
USD/JPY rises toward 152.50, despite strong Japan's PMI, cautious mood
USD/JPY has picked up fresh bids to test 152.50 in Asian trading on Tuesday, tracking the renewed US Dollar strength. The pair shrugs off strong Japanese PMI data and a cautious market mood. Traders remain wary as Americans head to polls this Tuesday.
Gold traders appear non-committal on the US election day
Gold price is miring in five-day lows near $2,730 in Asian trading on Tuesday, lacking a clear direction. Traders remain wary and refrain from placing fresh bets on Gold price on the US presidential election day.
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
US presidential election outcome: What could it mean for the US Dollar? Premium
The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.
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.