- USD / CAD loses its bullish momentum after climbing above 1.2800.
- WTI consolidates daily losses and stabilizes around $ 52 during the American session.
- The US Dollar DXY Index is back below 90.50 and appears to be closing in positive territory.
The pair USD / CAD has risen to its highest level in two weeks at 1.2835 at the start of the American session on Monday, but has struggled to maintain its bullish momentum. At the time of writing, the pair is up 0.65% on the day, trading at 1.2767.
DXY index rally loses steam
The general strength of the USD and the selling pressure around crude oil at the beginning of the week they provided a boost to USD / CAD. A barrel of West Texas Intermediate WTI, which gained more than 9% last week, has lost 2% before experiencing a further rally. At the moment, WTI is trading around $ 52, up more than 1% on the day.
Meanwhile, the US dollar DXY index has advanced to its highest level in three weeks at 90.72 after the major Wall Street indices opened sharply lower. However, the DXY index has fallen back towards 90.40 in the last hour with the S&P 500 index recovering most of the previous losses.
The latest Bank of Canada Business Outlook Survey on Monday showed that Most Canadian companies reported stronger hiring and investment plans amid strengthening demand. “Although about half of the companies said that current sales were below pre-pandemic levels, most expect sales to increase in the next 12 months,” the publication read. The upbeat tone has helped the CAD show some resistance against its US counterpart.
No significant macroeconomic data from Canada will be released on Tuesday. The US economic calendar will include JOLTS job openings, the NFIB Business Optimism Index, and the IBD / TIPP Economic Optimism Index.
USD / CAD technical levels
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