- USD / CAD is fluctuating in a very tight range on Tuesday.
- The modest recovery in crude oil prices helps the CAD limit its losses.
- The US Dollar Index remains in positive territory above 93.00.
The pair USD / CAD It closed the first day of the week in positive territory, but appears to be struggling to gain bullish momentum on Tuesday. At time of writing, the pair was virtually unchanged on the day at 1.2578.
Oil sale stops on Tuesday
Although the USD continues to outperform its rivals, the modest rebound in crude oil prices helps the commodity-sensitive Canadian dollar remain resilient against its US counterpart. Ahead of weekly crude oil stock data from the American Petroleum Institute, a barrel of West Texas Intermediate (WTI) is up 1% on the day to $ 67.40.
On the other hand, the US Dollar Index (DXY), which hit its highest level in almost three weeks at 93.10, remains afloat in positive territory above 93.00.
The US Economic Agenda will include Non-Farm Productivity and Unit Labor Costs data for the second quarter. Additionally, Cleveland Fed President Loretta Mester and Chicago Fed President Charles Evans will deliver speeches. On Monday, aggressive comments from the Fed provided a boost to the dollar and a similar market reaction could be witnessed should policy makers voice support for asset downsizing before the end of the year.
Technical levels
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