- Saudi Arabia voices committment to restore output after attack on Aramco.
- Crude oil prices calm down following Monday’s huge gains.
- US Dollar Index preserves Monday’s recovery gains ahead of the data.
Pressured by the sharp upsurge witnessed in crude oil prices and its positive impact on the commodity-sensitive Loonie, the USD/CAD pair edged lower on Monday. However, the broad-based USD strength and a pause in crude oil’s rally allowed the pair to turn north today. As of writing, the pair was up 0.2% on the day at 1.3260.
After posting its largest daily percentage gain in nearly 40 years yesterday, the barrel of West Texas Intermediate seems to be staying in a consolidation phase near the $62 handle. Saudi King Salman’s comments about the Kingdom staying committed to restoring the oil output in its facilities following the drone attacks seem to be helping ease concerns over protracted supply disruptions.
Attention shifts to data and the Saudi oil minister’s presser
Meanwhile, the US Dollar Index, which added 0.8% on Monday to erase last week’s losses, stays calm above the 98.50 area on Tuesday, providing additional support to the pair.
Later in the day, Manufacturing Sales data from Canada and Industrial Production and Capacity Utilization figures from the US will be looked upon for fresh impetus. More importantly, Saudi Arabia’s oil minister’s press conference at 17:15 GMT today will be watched closely by the market participants and a reaction in crude oil prices could affect the pair’s movements in the second half of the day.
Technical levels to watch for
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