- USD / CAD touched its lowest level in more than three years on Monday.
- Rising crude prices help the CAD retain its strength.
- The US dollar index remains at a contact distance of 90.00.
After closing the fifth consecutive week in negative territory, the pair USD / CAD it extended its slide and touched its lowest level since September 2017 at 1.2093 on Monday. However, the pair managed to make a modest bounce amid a lack of significant fundamental drivers and was last seen shedding 0.15% on the day at 1.2112.
Rising crude prices support CAD on Monday
On Friday, data from Canada showed that the unemployment rate in April rose to 8.1% from 7.8%. Despite the lousy jobs report, USD / CAD turned south as the USD faced heavy selling pressure after the Non-Farm Payroll report, which showed the US added only 266,000 jobs in April compared to 978,000. expected.
The US Dollar Index (DXY), which tracks the dollar’s performance against a basket of six major currencies, fell below 90.00 for the first time since late February on Monday before entering a consolidation phase. At the moment, the DXY is posting small daily losses at 90.13.
Meanwhile, a barrel of West Texas Intermediate is rising 1% daily at $ 65.50, helping the commodity-related CAD find demand and forcing the USD / CAD to remain in negative territory.
There will be no release of significant macroeconomic data in the United States or the Canadian economic record for the remainder of the day and the pair is likely to extend its sideways course around 1.2100.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
