- 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
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.
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.
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.