- Crude oil struggles to build on last week’s recovery gains.
- US Dollar Index steadies around mid-97s following early advance.
- Trade action likely to remain subdues in absence of data releases.
After starting the new week around 1.32 handle, the USD/CAD pair edged higher in the last couple of hours as the commodity-related Loonie struggled to find demand amid falling crude oil prices. As of writing, the pair was up 0.1% on the day at 1.3240.
Crude oil prices turn south on Monday
Following the decisive rebound witnessed on Thursday and Friday last week, crude oil failed to preserve its bullish momentum as investors shifted their focus back to the US-China trade dispute and its negative impact on the global economic growth and energy demand outlook. The barrel of West Texas Intermediate, which touched a daily low of $53.53 in the last hour, was last seen trading at $53.80, losing 0.7% on the day.
On the other hand, the US Dollar Index (DXY) pushed higher earlier in the day to reveal a broadly-stronger Greenback but falling US Treasury bond yields didn’t allow the DXY to stretch higher, keeping the pair’s gains capped for the time being. At the moment, the DXY is moving sideways near mid-97s.
In the absence of significant macroeconomic data releases in the remainder of the day, crude oil’s market valuation could remain as the sole driver of the pair’s price action.
Technical levels to watch for
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