- USD / CAD is struggling to find direction on Tuesday.
- The US dollar index is recovering from daily lows, it seems to close modestly lower.
- WTI remains in a consolidation phase around $ 65.
The pair USD / CAD it closed the previous four trading days in negative territory and extended its slide to the lowest level since September 2017 at 1.2077 on Tuesday. However, the risk averse market environment made it difficult for the CAD to retain its strength and the pair managed to rally in the second half of the day. At time of writing, USD / CAD was virtually unchanged on the day at 1.2094.
Major European stock indices suffered heavy losses on Tuesday and major Wall Street indices opened deep into negative territory, helping the dollar show some resilience against its peers. The US Dollar Index, which touched an 11-week low of 89.98 earlier in the day, was last down 0.11% on the day at 90.17.
Data from the US showed that NFIB’s Business Optimism Index improved to 99.8 in April from 98.2 and JOLTS job postings rose to 8.1 million, compared with analysts’ estimate of 7.5 million. However, these figures did not provoke a significant market reaction.
On the other hand, crude oil prices continue to fluctuate in a relatively tight range on Tuesday, limiting commodity-sensitive Canadian dollar gains limited for the time being. Ahead of the weekly crude oil stock report from the American Petroleum Institute, a barrel of West Texas Intermediate posted small daily gains close to $ 64.
No major macroeconomic data will be published on the Canadian economic calendar on Wednesday and investors will pay close attention to data from the US consumer price index (CPI).
Technical levels
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