- USD / CAD is moving lower on Tuesday after posting strong gains on Monday.
- WTI rises above $ 53 for the first time since February.
- The DXY US Dollar Index consolidates gains around 90.40 ahead of mid-level data.
The pair USD / CAD made almost 100 pips on Monday, but has struggled to maintain its bullish momentum on Tuesday. At the time of writing, the pair is down 0.20% on the day at 1.2752.
CAD capitalizes on oil rally
After a sharp drop at the beginning of the week, Crude oil gained traction on Tuesday and hit its highest level since late February above $ 53, giving the loon a boost sensitive to raw material prices. Before weekly crude oil stocks data from the American Petroleum Institute (API), WTI is up 1.6% on the day at $ 53.
On the other hand, The DXY US Dollar Index, which closed the previous four trading days in positive territory, appears to have entered a consolidation phase ahead of the release of US mid-level data For the time being, the DXY index remains virtually unchanged on the day at 90.44.
The US economic calendar will feature the release of the NFIB Business Optimism Index, IBD / TIPP Economic Optimism Index, and JOLTS job vacancies data.
Meanwhile, the US 10-year Treasury yield has extended its rally to a new 10-month high at 1,162% and is currently gaining about 1%. If US Treasury yields continue to rise, the US dollar could start to outperform other currencies and allow USD / CAD to recover.
USD / CAD technical levels
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