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USDCAD On The Move As Oil Pumps
Welcome to Thursday’s trade! It’s a strong open on Wall Street, featuring bullish action across the US indices. Commodities are also hot. Crude oil is extending its weekly range above $92.00, and spot gold is closing in on $4500 per ounce. Why the action? A bearish US dollar has been the catalyst for the bidding.
The early-morning NYC session has brought a slew of PMI numbers. In all honesty, these figures aren’t market movers. Nonetheless, the headliner was the ISM Non-Manufacturing PMI, which came in better than expected at 55.4. This is a positive economic metric, as anything above 50 suggests expansion. On the other hand, the ISM Non-Manufacturing Prices index posted a lofty 72.6 figure, beating both expectations (70.0) and the previous release (70.3). The ISM Non-Manufacturing Prices index tracks the prices paid by service-sector companies to suppliers for goods and services. In short, it's an inflationary metric. And, you guessed it: prices are going up!!!
The USD/CAD has been on fire this week. Oil up, the USD down, adds up to a big weekly range. Here is a support level worth watching:
Weekly 78% Fibonacci Retracement, 1.3698
Check out our Key Levels for more information on this Trade Idea. That’s all for now. We’ll see you on today’s US session livestream! (17:00 GMT Switch Markets on YouTube)
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