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  • USD/CAD lost its bullish momentum after climbing above 1.2800.
  • WTI consolidates daily losses, steadies around $52 in American session.
  • US Dollar Index retreats below 90.50, looks to close in the positive territory.

The USD/CAD pair rose to its highest level in two weeks at 1.2835 in the early trading hours of the American session but struggled to preserve its bullish momentum. As of writing, the pair was up 0.65% on a daily basis at 1.2767.

DXY rally loses steam

The broad-based USD strength and the selling pressure surrounding crude oil at the start of the week provided a boost to USD/CAD. The barrel of West Texas Intermediate, which gained more than 9% last week, lost as much as 2% before staging a most rebound. At the moment, the WTI is trading around $52, down more than 1% on the day.

Meanwhile, the US Dollar Index (DXY) advanced to its highest level in three weeks at 90.72 after Wall Street’s main indexes opened sharply lower. Nevertheless, the DXY edged lower toward 90.40 in the last hour with the S&P 500 Index paring a majority of earlier losses.

The Bank of Canada’s latest Business Outlook Survey showed on Monday that most Canadian firms reported stronger investment and hiring plans amid strengthening demand. “Although around half of firms said current sales were below pre-pandemic levels, most firms expect sales to increase in the next 12 months,” the publication further read and the upbeat tone helped the CAD show some resilience against its American counterpart.

There won’t any significant macroeconomic data releases from Canada on Tuesday. The US economic docket will feature JOLTS Job Openings, NFIB Business Optimism Index and IBD/TIPP Economic Optimism Index.

Technical levels to watch for