- USD/CAD is struggling to find direction on Monday.
- WTI is down more than 3% as oil production in Libya restarts.
- US Dollar Index stays quiet above 93.00 at the start of the week.
The USD/CAD pair is fluctuating in a narrow band on Monday as thin trading conditions due to the Columbus Day and Thanksgiving Day holiday in the US and Canada, respectively, keep movements limited. As of writing, the pair was virtually unchanged on the day at 1.3117.
WTI drops below $40 on Monday
Following the reports revealing that force majeure at Libya’s largest oilfield had been lifted, crude oil prices came under strong selling pressure. The barrel of West Texas Intermediate (WTI), which gained nearly 10% last week, is currently losing around 3% at $39.40. If the WTI fails to stage a rebound and extends its slide when North American traders return on Tuesday, the commodity-related CAD could struggle to stay resilient against its rivals.
On the other hand, the US Dollar Index (DXY) seems to be staying in a consolidation phase above 93.00 following last week’s slump. Meanwhile, Wall Street’s main indexes are posting decisive gains on Monday, making it difficult for the USD to find demand as a safe haven.
On Tuesday, the US economic docket will feature the Consumer Price Index (CPI), NFIB Business Optimism Index and the IBD/TIPP Economic Optimism data.
Technical levels to watch for
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