- USD / CAD is experiencing a rally after last week’s slide.
- Crude oil prices are falling on Monday.
- The USD remains relatively resilient against its rivals at the beginning of the week.
The pair USD / CAD It fell more than 100 pips last week and posted its lowest weekly close since April 2018 at 1.2780. With the US dollar finding some demand and crude oil prices losing traction, the pair is experiencing a rebound on Monday. At the time of writing, the pair is gaining 0.26% on the day at 1.2812.
WTI retraces below $ 46 after last week’s upward move
Last week, a barrel of West Texas Intermediate WTI touched its highest level in nearly nine months at $ 46.65 when OPEC and non-OPEC producers finally reached an agreement on the 2021 production strategy. However, Cautious market mood is making it difficult for WTI to extend its move higher. At the moment, the WTI falls 0.8% on the day at $ 45.72, weighing on the Canadian dollar, a currency pegged to commodity prices.
Also, the positive impact on the CAD of the optimistic Canadian jobs report, which showed that the unemployment rate in November fell to 8.5% from 8.9%, seems to have faded.
On the other hand, the DXY US Dollar Index is rising modestly after falling more than 1% last week and helping USD / CAD to stay in positive territory. Supported by safe haven cash flows, the DXY index is up 0.35% on the day at 91.02.
Later in the day, market participants will turn their attention to Ivery Canada’s PMI Purchasing Managers Index report. The only data included in the US economic calendar will be the changes in consumer credit for October.
USD / CAD technical levels
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