- USD / CAD rises in the second half of the day.
- The WTI consolidates Monday’s gains and records small daily losses below $ 60.
- The US dollar index remains above 90.50 thanks to rising US Treasury yields.
The pair USD / CAD it closed the first day of the week deep in negative territory and fell to its lowest level since Jan 21 at 1.2608 on Tuesday. With the dollar gaining strength in the second half of the day, the pair reversed its direction and was last seen trading at 1.2692, rising 0.45% on the day.
DXY remains above 90.50
Earlier in the day, the selling pressure surrounding the USD caused the USD / CAD to continue to push lower. However, the strong rally seen in US Treasury yields early in the US session provided a boost to the dollar. As of this writing, the US Dollar Index is holding on to modest daily gains above 90.50 and the yield on the US 10-year Treasury is up nearly 6%.
The only US data on Tuesday showed that New York’s Empire State Manufacturing Index rose to 12.1 in February from 3.5 in January and beat the market expectation of 6 by a wide margin.
Meanwhile, crude oil prices are trading in a relatively tight range on Tuesday, allowing the USD market valuation to remain the main driver of USD / CAD movements. A barrel of West Texas Intermediate (WTI), which hit its highest level in more than a year at $ 60.92, was down 0.35% on the day at $ 59.90.
On Wednesday, US retail sales data and Canadian consumer price index (CPI) figures will be seen for further momentum.
Technical levels
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