- USD / CAD is posting small losses on Monday.
- The US Dollar DXY Index remains flat on the day around 90.20.
- Mid-level data releases will be included in the US economic calendar.
The pair USD / CAD posted strong gains on Friday and closed the prior week virtually unchanged. At the beginning of the new week, the pair is struggling to make a decisive move in any direction. After bouncing above 1.2700 during the European session on Monday, the USD / CAD has lost its momentum. At the time of writing, the pair is down 0.23% on the day at 1.2697.
Rising Oil Prices Boost CAD
At the start of the European session, Disappointing IFO data from Germany caused the EUR / USD to fall sharply and helped the US dollar to gain strength against their rivals. The DXY US Dollar Index has risen above 90.30 as an initial market reaction, but has stabilized around 90.20 ahead of the release of mid-level US macroeconomic data.
Meanwhile, a barrel of West Texas Intermediate WTI is up 1.5% on the day and is trading around $ 52.80, allowing the Canadian dollar, a currency pegged to commodity prices, to outperform the US dollar.
Later in the day, the Chicago Fed National Activity Index and the Dallas Fed Manufacturing Companies Index will be included in the US economic calendar.
Meanwhile, S&P 500 futures are gaining 0.35%, suggesting that major Wall Street indices could start the day in positive territory and force the USD to remain under bearish pressure in the second half of the day.
USD / CAD technical levels
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