USD / CAD enters consolidation after falling to a multi-year low at 1.2011

• USD / CAD is trading negative for the third day in a row.
• The selloff around the USD remains intact ahead of the mid-level data release.
• Rising crude oil prices continue to support the CAD.

The pair USD / CAD closed the first day of the week in the red and extended its slide to a new six-year low in 1.2011 before entering a consolidation phase. At the time of writing, the pair is down 0.25% on the day, trading at 1.2038.

WTI continues to rise, USD remains on the defensive

Rising crude oil prices, backed by the highest hopes for a steady recovery in global energy demand, continues to boost the Canadian dollar, a currency related to commodity prices. At the time of writing, a barrel of West Texas Intermediate WTI is trading at its highest since early March at $ 66.75, up 0.6% on the day.

On the other hand, relentless selling pressure around the US dollar allows the pair’s bearish momentum to remain intact. The DXY US Dollar Index has touched its lowest level since Feb. 25 at 89.75 earlier in the day, while it is currently down 0.4% at 89.82. In the absence of major fundamental drivers, market optimism makes it difficult for the USD to find demand.

Later in the session, the release of US building permits and housing starts data for April could provide further momentum to the pair. Meanwhile, S&P 500 futures and Nasdaq futures are up 0.3% and 0.7%, suggesting that risk appetite money flows are likely continue to dominate financial markets in the second half of the day, weighing further on the USD.

USD / CAD technical levels