- The USD appears to have settled around 1.2800 in the US session.
- Rising crude prices helped the CAD outperform its peers on Tuesday.
- The US dollar index rose to fresh two-month highs above 91.20.
The pair USD / CAD it rose to a fresh daily high of 1.2870 in the early trading hours of the US session, but took a 180 degree turn with rising crude oil prices giving the CAD a boost. At time of writing, the pair was down 0.33% on the day at 1.2810.
WTI jumps to yearly highs on Tuesday
Renewed hopes for a steady recovery in demand for energy oil amid hopes of US stimulus and ongoing coronavirus vaccines prompted a rebound in crude oil prices. A barrel of West Texas Intermediate touched its highest level in more than a year at $ 55.23 and was last seen rising 2.4% on the day at $ 54.80.
On the other hand, supported by rising US Treasury yields, the US dollar index advanced to a new two-month high of 91.28 on Tuesday and capped the decline in USD / CAD.
Earlier in the day, US data revealed that the ISM-NY trading conditions index in January fell to 51.2 from 61.3 in December. On a positive note, IBD / TIPP’s economic optimism in February improved to 51.9 and beat the market expectation of 51.
No major macroeconomic data from Canada will be released on Wednesday. ADP job change data and US services ISM PMI will be considered for further momentum.
Technical levels
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