- USD / CAD is posting strong daily gains on Tuesday.
- WTI is losing almost 2% after Monday’s rally.
- The US Dollar Index stabilizes around 93.30 following a performance-inspired rally.
The pair USD / CAD it rose to its highest level since March 10 at 1.2647 on Tuesday and appears to have entered a consolidation phase around 1.2640.
Oil sell off weighs on CAD
Selling pressure surrounding crude oil and relentless USD strength fueled the USD / CAD daily rally.
With the resumption of operations in the Suez Canal, the barrel of West Texas Intermediate (WTI) turned south on Tuesday and was last seen shedding nearly 2% on the day at $ 60.40. Later in the session, the weekly stock of crude oil from the American Petroleum Institute (API) will be considered for further momentum.
On the other hand, supported by rising US Treasury yields, the US dollar index hit its highest level in nearly five months at 93.35 and provided an additional boost to USD / CAD.
Data released by the Conference Board on Tuesday showed that the Consumer Confidence Index in March rose to a one-year high of 109.7 to beat the market expectation of 96.9 by a wide margin.
On Wednesday, January’s Gross Domestic Product (GDP) will be placed on the Canadian economic agenda and investors expect the economy to grow 0.5% after December’s 0.1% expansion. Additionally, the Automatic Data Processing Research Institute (ADP) will release the US Private Sector Employment Report for March.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
