- USD / CAD is falling for the seventh consecutive trading day.
- WTI touched its highest level since February 2020 at $ 49.80.
- The focus shifts to PMI data for Canada and the United States.
The pair USD / CAD It lost 140 pips last week and extended its slide on Monday under pressure from widespread USD weakness and rising crude prices. At time of writing, the pair is trading at its lowest level since April 2018 at 1.2672, shedding 0.43% on the day.
CAD capitalizes on oil rally
Risk flows continue to dominate financial markets on the first trading day of 2021. Driven by increased optimism for a steady recovery in global energy demand, a barrel of West Texas Intermediate (WTI) rose to its lowest level. high since February 2020 at $ 49.80 on Monday and helped the CAD gain traction against its rivals.
Earlier in the day, Reuters reported that most OPEC + experts said they do not support an increase in the group’s oil production from February by another 500,000 barrels per day and this headline appears to be helping WTI to go up.
On the other hand, the dollar struggles to meet demand as a safe haven and the US dollar index is losing 0.5% around 89.50.
In the second half of the day, IHS Markit will release manufacturing PMI data for Canada and the United States. Additionally, investors will keep a close eye on US stocks, which remain on track to open at new all-time highs. If the market mood remains upbeat in the US session, the USD is likely to remain weak against its rivals.
Technical levels
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