- USD/CAD came under renewed bearish pressure ahead of American session.
- WTI trades above $47, gains more than 1% on Monday.
- US Dollar Index remains depressed near 90.50 area.
After spending the first half of the day moving sideways near 1.2770, the USD/CAD pair came under bearish pressure and touched a daily low of 1.2733. As of writing, the pair was down 0.3% on a daily basis at 1.2736.
Rising crude oil prices help the commodity-related CAD gather strength against its major rivals at the start of the week. With coronavirus vaccines receiving approval for emergency use, investors continue to price a steady recovery in energy demand in 2021. At the moment, the barrel of West Texas Intermediate (WTI) is up 1.07% on a daily basis at $47.07.
DXY continues to push lower
On the other hand, the upbeat market mood, as reflected by sharp upsurges witnessed in major global equity indexes, is making it difficult for the greenback to find demand as a safe-haven. The US Dollar Index, which closed the previous week virtually unchanged at 90.75, just recently touched its lowest level since April 2018 at 90.43.
There won’t be any significant macroeconomic data releases from Canada not the United States on Monday and risk sentiment is likely to remain the primary driver of USD/CAD’s movements.
Wednesday’s economic calendar will feature key events for USD/CAD. The Bank of Canada will release its November Consumer Price Index (CPI) data and the FOMC will announce its monetary policy decisions alongside updated economic projections.
Technical levels to watch for
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