USD / CAD recovers modestly to 1.2800 as oil cuts early gains

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  • The USD / CAD erased a small part of the daily losses at the beginning of the American session.
  • The US Dollar Index remains in negative territory on Tuesday.
  • WTI is trading virtually unchanged on the day near $ 70.60.

After climbing to a new monthly high of 1.2896 on Monday, the pair USD / CAD it reversed its direction and fell to a daily low of 1.2740 on Tuesday. However, early in the US session, the pair experienced a modest rebound and was last seen shedding 0.22% on the day at 1.2795.

USD struggles to find demand as mood improves

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After a three-day slide, crude prices turned north on Tuesday as sentiment improved and a barrel of West Texas Intermediate (WTI) rose to the $ 71.50 zone during the European session before losing its bullish momentum. Currently, the WTI is virtually unchanged on the day at $ 70.60, making it difficult for the Canadian dollar related to commodities to retain its strength.

However, the general weakness of the USD is causing the USD / CAD to remain in negative territory. The US Dollar Index (DXY), which capitalized on safe-haven flows and advanced to 93.45 on Monday, was last seen posting small daily losses at 93.15.

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US data showed Tuesday that home starts and building permits rose 3.9% and 6%, respectively, in August, but these figures did not provoke a noticeable reaction in the market. On a negative note, the Major Regional Business Activity Index from the Federal Reserve Bank of Philadelphia’s Non-Manufacturing Trade Outlook Survey slumped to 9.6 in September from 39.1 in August.

Meanwhile, the major Wall Street indices opened modestly higher, preventing the DXY from turning positive that day.

Technical levels


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