USD / CAD remains in negative territory below 1.2630 as oil continues to rebound

  • USD / CAD continues to slide lower after Monday’s slide.
  • The US dollar index remains sideways on the day near 93.00.
  • WTI is rising more than 1% after gaining almost 6% on Monday.

The pair USD / CAD It lost more than 150 pips on Monday as the commodity-sensitive loon capitalized on rising crude prices. Although the downward pressure surrounding the pair appears to have eased on Tuesday, it remains in negative territory and was last seen shedding 0.2% at 1.2620.

Ongoing oil rally supports CAD

The risk-positive market environment provided a boost to oil prices at the beginning of the week. A barrel of West Texas Intermediate (WTI), which lost more than 8% last week, gained 5.8% on Monday. Ahead of weekly crude oil stock data from the American Petroleum Institute, WTI is up 1.6% on the day to $ 65.65, helping CAD continue to outperform rivals.

On the other hand, the US Dollar Index remains quiet near 93.00, allowing the market valuation of CAD to boost USD / CAD action.

Later in the session, July new home sales and the Richmond Fed Manufacturing Index will be included on the US economic record. Meanwhile, S&P futures are up 0.15% ahead of the bell of opening, suggesting that the USD could struggle to find demand if risk flows continue to dominate financial markets in the second half of the day.

Technical levels

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