- USD/CAD lost its traction after climbing above 1.2900.
- US Dollar Index edged higher toward 93.00 in the early American session.
- WTI posts modest daily gains, trades above $61.00.
The USD/CAD climbed to a fresh session high of 1.2621 in the early American trading hours but reversed its direction and erased a large portion of its daily gains. As of writing, the pair was up 0.14% on a daily basis at 1.2590.
DXY loses momentum ahead of 93.00
In the absence of significant macroeconomic data releases from the US, the performance of US Treasury bond yields continues to impact the USD’s valuation.
The benchmark 10-year US Treasury bond yield, which lost nearly 2% during the European session, staged a rebound and turned positive on the day and the US Dollar Index (DXY) reached its highest level since mid-November at 92.96. At the moment, the DXY seems to be consolidating its daily gains around 92.80.
On the other hand, crude oil prices gained traction after Reuters reported that Russia was supporting a rollover of the OPEC+ oil output from April to May. Following an earlier decline amid reports revealing that operations in Suez Canal were set to resume on Monday, the barrel of West Texas Intermediate advanced beyond $61 and helped commodity-sensitive loonie stay resilient against its rivals.
There won’t be any macroeconomic data releases featured in the Canadian economic docket on Tuesday. The Conference Board will release the US Consumer Confidence data for March but investors are likely to remain focused on US Treasury bond yields.
Technical levels to watch for
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