USD / CAD recovers from daily lows, posting modest losses near 1.2670

• USD / CAD continues to fluctuate in a tight range,
• WTI clears part of daily earnings after updating multi-week highs.
• The US Dollar Index is still on track to end the day flat.

The pair USD / CAD it came under modest downward pressure during US trading hours and hit a daily low of 1.2637. However, the pair managed to rebound in the last hour and was last seen losing 0.15% on the day at 1.2670.

The WTI rally suffers from the CAD

Rising crude prices helped the Canadian dollar gain traction against its US counterpart earlier in the day. After rising more than 2% on Friday, the West Texas Intermediate (WTI) barrel retained its bullish momentum and reached its highest level since early August at $ 70.94 before entering a consolidation phase. At time of writing, WTI was up 1% to $ 70.30.

On the other hand, the dollar started the new week on a firm footing with the US dollar index (DXY) advancing towards 93.00. However, the positive change in market sentiment after the strong opening of Wall Street made it difficult for the DXY to continue rising. Currently, the DXY is practically unchanged on a daily basis at 92.66.

On Tuesday, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) figures for August.

With a preview of this data, “the underlying CPI figure for August is critical for the markets and for the markets,” said FXStreet analyst Yohay Elam. “A reading within the estimates would keep the supply in dollars, a level of 4.5% or more would generate gains, while 4% or less could undo recent gains.”

Technical levels