- USD/CAD starts week on the back foot, posts modest daily losses.
- US Dollar Index stays relatively calm near 93.00.
- WTI trades below $42 ahead of OPEC+ JMMC meeting.
The USD/CAD pair snapped a four-day losing streak on Friday and gained 50 pips but failed to preserve its bullish momentum at the start of the new week. As of writing, the pair was down 0.23% on a daily basis at 1.3236.
DXY remains depressed near 93.00
The modest bearish pressure surrounding the greenback seems to be making it difficult for the pair to reverse its course on Monday. The US Dollar Index (DXY), which closed the eighth straight week in the negative territory last week, is struggling to make a convincing recovery above 93.00 as US treasury bond yields stay in the red. Later in the day, the NY Fed’s Empire Stats Manufacturing Survey will be looked upon for fresh impetus.
On the other hand, the cautious market mood is weighing on risk-sensitive crude oil prices and helping USD/CAD limit its losses. Ahead of the Organization of the Petroleum Exporting Countries’ (OPEC) Joint Ministerial Monitoring Committee (JMMC) on August 19th, the barrel of West Texas Intermediate (WTI) is down 0.7% on the day at $41.90.
Meanwhile, Statistics Canada will release the Foreign Portfolio Investment in Canadian Securities data but it’s unlikely to trigger a market reaction. The next critical macroeconomic data for the CAD will be Wednesday’s inflation report. Investors expect the Consumer Price Index (CPI) to decline from 0.8% to 0.4% on a monthly basis in July.
Technical levels to watch for
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