USD/CAD climbs to fresh multi-week highs at 1.3350

• US Dollar Index inches closer to 97 handle.
• WTI trades in red below $57.
• Coming up: Services PMI data from the U.S.

After closing the previous day above the 1.33 handle, the USD/CAD pair extended its rally to its highest level since the last week of January at 1.3350. As of writing, the pair was trading at 1.3346, adding 0.33% on a daily basis.

The negative impact of last Friday’s disappointing GDP data from Canada seems to be still weighing on the loonie. Additionally, crude oil prices came under a renewed pressure on Tuesday and dragged the barrel of West Texas Intermediate below the $57 mark to hurt the demand for commodity-sensitive currencies such as the CAD.  

Meanwhile, rising political concerns amid the resignation of another cabinet member in Canada over allegations against Prime Minister Justin Trudeau seems to be keeping investors away from the currency.  

On the other hand, ahead of the IHS Markit’s and the ISM’s Services PMI data from the U.S., the US Dollar Index stays in the positive territory for the fifth straight day and supports the pair’s upsurge today. At the moment, the DXY is up 0.12% on the day at 96.76. In addition to the PMI data, speeches by FOMC members Barkin and Kashkari will also be watched closely by the market participants.

Technical levels