- USD/CAD stays under modest bearish pressure on Monday.
- US Dollar Index slumps to multi-week lows near 91.00.
- WTI consolidates last week’s gains, trades above $63.
The USD/CAD pair started the new week under modest bearish pressure and dropped to its lowest level in a month at 1.2469. After staging a modest rebound and rising to the 1.2500 area during the European trading hours, the pair lost its traction and was last seen losing 0.2% on the day at 1.2480.
USD selloff remains intact
Amid a lack of significant fundamental drivers, the USD’s market valuation continues to impact USD/CAD’s movements. Following last week’s steep decline amid slumping US Treasury bond yields, the US Dollar Index remains on the back foot on Monday and is currently trading at its lowest level in six weeks at 91.04, losing 0.62% on a daily basis. Although the benchmark 10-year US T-bond yield is posting modest daily gains in the early American session, the greenback struggles to attract investors.
On the other hand, the barrel of West Texas Intermediate (WTI), which gained more than 6% last week, is consolidating last week’s upsurge above $63, helping the commodity-related loonie preserve its strength.
Earlier in the day, the data from Canada showed that Housing Starts in March climbed to 335.2K, beating the market expectation of 250K, but this upbeat reading failed to trigger a market reaction.
There won’t be any macroeconomic data releases featured in the US economic docket in the remainder of the day and investors will keep a close eye on US stocks. At the moment, the S&P 500 Futures are down 0.2% on the day and a deep correction in Wall Street’s main indexes could allow the USD to erase a portion of its losses.
Technical levels to watch for