- USD/CAD dropped to fresh multi-week lows on Monday.
- WTI trades above $60 for the first time in 13 months.
- US Dollar Index stays in the negative territory near 90.30.
The USD/CAD pair closed the previous week in the negative territory and struggled to shake off the bearish pressure at the start of the new week. As of writing, the pair was trading at its lowest level since January 22 at 1.2660, losing 0.27% on a daily basis.
Oil rally remains intact
In the absence of significant fundamental drivers, crude oil prices continue to impact the commodity-sensitive loonie’s performance against its major rivals.
Boosted by heightened optimism for a steady recovery in global energy demand and declining oil inventories in the US, the barrel of West Texas Intermediate (WTI) gained nearly 5% last week and extended its rally on Monday. At the moment, WTI is trading at its highest level in more than 13 months at $60.55, up 1..6% on a daily basis.
On the other hand, the upbeat market mood, as reflected by decisive gains witnessed in major European equity indexes, is making it difficult for the greenback to find demand. The US Dollar Index (DXY) is currently losing 0.13% on the day at 90.30.
The trading action is expected to remain subdued in the second half of the as US markets will be closed due to the Presidents Day holiday.
Technical levels to watch for
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