- USD / CAD started the new week on a solid footing.
- The drop in crude oil prices continues to weigh on the CAD.
- The US Dollar Index remains in positive territory on Monday.
After closing modestly lower the previous week, the pair USD / CAD it bounced on Monday and hit its highest level in a week at 1.3193. At time of writing, the pair was up 0.52% on the day at 1.3190.
WTI plummets amid dire prospects for demand
Falling crude oil prices make it difficult for the commodity-related Canadian dollar to find demand. The rising number of coronavirus infections globally and recently imposed restriction measures in Europe appear to have reignited concerns about an uneven recovery in energy demand. At time of writing, a barrel of West Texas Intermediate (WTI) was down 2.2% on the day at $ 38.85.
On the other hand, risk aversion is helping the dollar gain traction against its peers as a safe haven. At the moment, the US Dollar Index (DXY) is gaining 0.3% on the day at 93.02. Meanwhile, S&P 500 futures fell more than 1% on the day, suggesting that the DXY could extend its daily rise if Wall Street suffers heavy losses after the opening bell.
Later in the session, the Federal Reserve Bank of Chicago will release its National Activity Index. New home sales data for September will also feature on the US economic calendar.
Technical levels
.
Credits: Forex Street
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.
