- USD / CAD continues to push lower during the American session.
- The US Dollar Index falls below 92.00 on Monday.
- Rising crude prices provide a boost to CAD.
After last week’s impressive rally, the pair USD / CAD He started the new week on the wrong foot and organized a deep correction. As of writing, the pair is trading at 1.2370, shedding 0.75% on the day.
USD sell-off picks up steam
Widespread dollar strength and rising crude prices weighed heavily on USD / CAD on Monday. After posting its biggest weekly percentage gain following the aggressive change seen in the FOMC’s policy outlook, the US Dollar Index (DXY) fell sharply on Monday. At the moment, the DXY lost 0.45% on the day to 91.90.
Louis Fed Chairman James Bullard said Monday that the Fed will have to be ready to make adjustments to the reduction. On the other hand, Dallas Fed Chairman Robert Kaplan reiterated that he is in favor of taking his foot off the gas on monetary support sooner rather than later. Despite these comments, the dollar struggled to regain its strength.
On the other hand, renewed concerns that the United States and Iran would not reach an agreement on nuclear talks triggered a sharp rebound in crude prices on Monday. With a barrel of West Texas Intermediate (WTI) rising nearly 3% and reaching its highest level since October 2018 at $ 73.45, commodity-related loonie continues to outperform its main rivals.
Technical levels
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