- USD / CAD reversed its direction after posting losses on Monday.
- Crude oil performance does not appear to have a significant impact on CAD.
- The US dollar index rises ahead of the release of mid-level data.
The pair USD / CAD It lost more than 50 pips on Monday as the dollar came under heavy selling pressure after the Easter holidays. However, the pair found support around 1.2500 and began to erase its losses on Tuesday. At time of writing, USD / CAD was up 0.32% on the day at 1.2561.
CAD ignores oil prices
The correlation between the CAD market valuation and crude oil prices appears to have weakened lately. At the beginning of the week, a barrel of West Texas Intermediate (WTI) lost more than 4%, but the Canadian dollar managed to outperform its US counterpart. Similarly, USD / CAD continues to rise despite a 1% rise in WTI prices on Tuesday.
On the other hand, the US dollar index, which fell 0.5% on Monday after the S&P 500 and the Dow Jones industrial average rose to new all-time highs, is rising 0.2% to 92.75, allowing the USD / CAD remains in positive territory.
No macroeconomic data will be published in the Canadian Economic File. The IBD / TIPP Economic Optimism Index and the US JOLTS job vacancy data will be revised for fresh momentum.
However, investors will closely monitor the performance of the major Wall Street indices and a negative shift in risk sentiment could provide additional boost to the USD. Currently, S&P 500 futures are down 0.2%.
Technical levels
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