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  • WTI drops more than 1% on Tuesday ahead of the weekly API data.
  • US Dollar Index stays flat on the day near mid-97s.
  • Coming up: Ivey PMI from Canada and IBD/TIPP Economic Optimism from the U.S.

The USD/CAD pair closed the first day of the week modestly lower and extended its slide toward the 1.34 handle in the early European morning before gaining traction in the last couple of hours. As of writing, the pair was up 0.08% on a daily basis at 1.3459.

Pressured by the escalating fears of the U.S. and China staying in a trade war weighed on crude oil prices on Monday and caused the barrel of West Texas Intermediate to test the $60 handle. Although the WTI staged a rebound and closed the day in the positive territory, it failed to preserve its momentum and turned south, once again, on Tuesday to hurt the demand for the commodity-sensitive loonie. At the moment, the WTI is down 1.35% on the day at $61.65.

On the other hand, the greenback continues to take advantage of the risk-averse atmosphere and stays resilient against its rivals for the second straight day with the US Dollar Index floating above the 97.50 mark.

In the second half of the day, JOLTS  job openings data and the IBD/TIPP Economic Optimism Index from the U.S. will be looked upon for fresh impetus. From Canada, Ivey  PMI will be the only data release of the day.

Technical levels to consider