- USD / CAD starts the holiday shortened week on the wrong foot.
- WTI is trading in positive territory above $ 48 on Monday.
- The USD struggles to find demand after President Trump signs the COVID-19 relief bill.
The pair USD / CAD pushed lower toward 1.2800 on Monday, but posted a modest rebound ahead of the US session. At time of writing, the pair was down 0.2% on the day at 1.2841.
Rising crude prices helped the commodity-sensitive loon to gain steam earlier in the week. With US President Donald Trump signing the COVID-19 relief bill on Sunday night, the risk climate turned positive and crude oil prices gained ground. At the moment, a barrel of West Texas Intermediate is up 0.65% at $ 48.60.
Eyes on Wall Street
On the other hand, the USD is having a difficult time finding the demand as a safe haven and allowing the USD / CAD to stay in negative territory. The US Dollar Index (DXY), which fell below 90.00 earlier in the day, is currently posting small daily gains at 90.28. The fact that there were no fundamental factors behind the DXY bounce suggests that this move was a technical correction.
Meanwhile, S&P 500 futures are up 0.7% on the day and the dollar could weaken against its rivals in the second half of the day if the major Wall Street indices rise sharply.
No major macroeconomic data will be released for the rest of the day.
Technical levels
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