- WTI extends rally to fresh 2019 high.
- US Dollar Index climbs toward mid-97s.
- Durable goods orders from the U.S. coming up next.
The USD/CAD pair retraced a large part of Monday’s losses and rose to 1.3340 before losing its traction in the last couple of hours with the commodity-related loonie grabbing investors’ attention amid another bullish wave seen in crude oil. At the moment, the pair is trading at 1.3315, still up 10 pips on the day.
Boosted by the upbeat data from China and expectations of the U.S. imposing additional sanctions on Iran’s crude oil exports, the barrel of West Texas Intermediate, which added more than 2.5% on Monday, climbed to its highest level since November of 2017 at $62.17 today. Ahead of the weekly API crude oil stock from the U.S. later in the day, the WTI is trading near $62, adding 0.4% on a daily basis.
On the other hand, the unabated selling pressure surrounding major European currencies such as the GBP and the EUR on Tuesday helped the greenback find demand and keep the pair’s losses limited for the time being.
Durable goods orders and the ISM NY’s Business Conditions Index will be looked upon for fresh catalysts today and the US Dollar Index is clinging to small gains around 97.40 ahead of the data.
Technical levels to consider
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