USD/CAD slumps to lowest level since May 2018 at 1.2770 on broad USD weakness

• USD/CAD extends the slide into third straight day.
• US Dollar Index drops to multi-year lows below 90.
• WTI climbs to fresh daily highs above $48 ahead of EIA report.

After closing the first two days of the week in the negative territory, the USD/CAD continues to push lower on Wednesday and was last seen trading at its lowest level since May 2018 at 1.2770, losing 0.36% on the day.

Risk flows hurt USD, lift WTI

The unabated selling pressure surrounding the greenback and a stronger loonie on the back of rising crude oil prices keep the bearish momentum intact.

Supported by the optimism for a steady recovery in energy demand amid coronavirus vaccine rollout, the barrel of West Texas Intermediate (WTI) is gaining 0.8% on the day at $48.45 ahead of the weekly EIA Crude Oil Stocks Change data.

On the other hand, the US Dollar Index (DXY) extends its slide with investors showing no interest in safe-haven assets. On Tuesday Wall Street’s main indexes notched new all-time highs and the bullish rally seems poised to continue with the S&P 500 Futures rising 0.35%.

Later in the session, Pending Home Sales, Goods Trade Balance and Chicago Purchasing Managers’ Index will be released from the US and the DXY is currently down 0.3% at 89.72.

Technical levels to watch for