USD/CAD keeps rising and breaks above 1.2850

By FXStreet The Canadian dollar is falling sharply across the board and recently extended losses after the release of crude oil inventory data that triggered a decline in the price of the barrel.

USD/CAD broke above 1.2800 two hours ago and it reached recently a fresh 2-week high at 1.2870. Currently, it trades at 1.2860, up 1.10%. For the second day in a row the pair is rising more than a hundred pips.

From yesterday’s multi-month lows the pair climbed over 400 pips on an impressive rally that pushed the price above important technical levels suggesting a possible bottom.

WTI retreats

A stronger US dollar across the board, that receive an extra boost after the ISM non-manufacturing index showed a higher-than-expected increase, risk aversion and the reversal in crude oil, favored the upside in the USD/CAD pair.

The WTI barrel was moving toward $45.00 but is now under $44.00, after erasing in a few minutes most of the day’s gains. According to information from EIA, crude oil inventories have increased by nearly 2.8 million barrels last week, almost twice as expected.
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Source:: FX Street