- USD/CAD pushes higher in the second half of the day.
- WTI consolidates Monday’s gains, post small daily losses below $60.
- US Dollar Index holds above 90.50 on rising US T-bond yields.
The USD/CAD pair closed the first day of the week deep in the negative territory and dropped to its lowest level since January 21 at 1.2608 on Tuesday. With the greenback gathering strength in the second half of the day, the pair reversed its direction and was last seen trading at 1.2692, rising 0.45% on a daily basis.
DXY steadies above 90.50
Earlier in the day, the selling pressure surrounding the USD caused USD/CAD to continue to push lower. However, the sharp upsurge witnessed in the US Treasury bond yields in the early American session provided a boost to the greenback. As of writing, the US Dollar Index is clinging to modest daily gains above 90.50 and the 10-year US T-bond yield is up nearly 6%.
The only data from the US showed on Tuesday that the NY Empire State Manufacturing Index rose to 12.1 in February from 3.5 in January and beat the market expectation of 6 by a wide margin.
Meanwhile, crude oil prices trade in a relatively tight range on Tuesday, allowing the USD’s market valuation to remain as the primary driver of USD/CAD’s movements. The barrel of West Texas Intermediate (WTI), which touched its highest level in more than a year at $60.92, is down 0.35% on the day at $59.90.
On Wednesday, Retail Sales data from the US and Consumer Price Index (CPI) figures from Canada will be looked upon for fresh impetus.
Technical levels to watch for
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