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  • USD/CAD is fluctuating in a narrow channel on Monday.
  • US Dollar Index retreats to 91.00 area during American session.
  • WTI continues to push higher, closes in on $58.

The USD/CAD pair dropped to a session low of 1.2739 in the early trading hours of the American session but lost its bearish momentum amid lack of significant fundamental drivers. As of writing, the pair was virtually unchanged on a daily basis at 1.2753.

There were no macroeconomic data releases from the US on Monday and the greenback weakened modestly against its rivals after Wall Street’s main indexes opened at new all-time highs on Monday. The US Dollar Index (DXY) dropped to 90.89 after the opening bell but returned to 91.00 area, where it was posting small daily losses.

Oil rally remains unabated

Meanwhile, crude oil prices are edging higher for the sixth straight day on Monday and helping the commodity-related loonie stay resilient. At the moment, the barrel of West Texas Intermediate (WTI) is trading at its highest level in more than a year at $51.95, gaining 1.75% on the day.

Previewing this week’s key events for the CAD, “a quiet week for data will keep the markets focus centered around the ongoing pandemic and US stimulus developments,” said TD Securities analysts. “Wholesale trade for December will provide the week’s only economic data when released on Friday but we will also hear from the BoC’s Lane on Wednesday.”

Technical levels to watch for