- USD/CAD is fluctuating in a tight range below 1.2800 on Monday.
- WTI trades at its highest level in more than a year above $57.
- US Dollar Index stays in the positive territory above 91.00.
The USD/CAD pair fell sharply on Friday and closed the week virtually unchanged. On Monday, the pair is struggling to make a decisive move in either direction and was last seen posting modest daily gains at 1.2772.
DXY edges higher after Friday’s slump
The Canadian jobs revealed on Friday that the Unemployment Rate rose to 9.4% with the Net Change in Employment arriving at -212K in January. Despite the disappointing data, however, the selling pressure surrounding the greenback and rising crude oil prices caused USD/CAD to push lower ahead of the week.
After the US Bureau of Labor Statistics reported that Nonfarm Payrolls (NFP) in January increased by 49K in January following December’s decline of 227,000 (revised from 140,000) the US Dollar Index (DXY) turned south and lost more than 0.5%.
In the absence of significant macroeconomic data releases, the DXY is staging a technical correction, rising 0.15% at 91.18.
Meanwhile, the barrel of West Texas Intermediate (WTI) closed every day in the positive territory last week and extended its rally into a sixth straight day on Monday, helping the commodity-related loonie stay resilient against the USD. At the moment, the WTI is trading at its highest level in more than a year at $57.50.
Technical levels to watch for
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