- WTI rebounds from lows, stays in the negative territory on Monday.
- Upbeat PMI data from the US help the Greenback remain strong.
- US Dollar Index clings to daily gains above 98.50.
The USD/CAD pair spent the European trading hours moving sideways near the 1.33 mark but came under bearish pressure in the second half of the day. After testing the 1.3260 handle, however, the pair reversed its course and erased its losses. As of writing, the pair was up 0.2% on the day at 1.3280.
Crude oil starts the week on the backfoot
Reports suggesting that production in Saudi Arabia’s oil facilities were set to be fully restored next week put crude oil under selling pressure at the start of the week. Moreover, the disappointing macroeconomic data releases from Germany and the euro area revived fears over a global economic slowdown and its potential negative impact on the energy demand to further weigh on crude oil. The barrel of West Texas Intermediate (WTI) slumped to a low of $57.55 earlier in the day to cause the commodity-related Loonie to weaken against its rivals.
Although the WTI rebounded after Russian Energy Minister Alexander Novak today said that Russia was planning to cut its September oil output in order to comply with the OPEC+ deal, it remains in the negative territory near $58.30.
The dismal data from the euro area also allowed the Greenback to gather strength on Monday. After closing the previous week with modest losses, the US Dollar Index (DXY) rose to its highest level in more than ten days above 98.80 before going into a consolidation phase in the last couple of hours.
Today’s data from the US showed that the business activity in both the manufacturing and the service sectors expanded at a more robust pace than they did in August to support the DXY’s rally. At the moment, the index is up 0.15% on the day at 98.60.
Technical levels to watch for
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