- USD/CAD is pushing lower at the start of the week.
- WTI is trading at its highest level in more than two months near $43.
- US Dollar Index extends slide toward 92.00 ahead of mid-tier data.
The USD/CAD pair is edging lower on Monday as the rising crude oil prices help the commodity-related CAD outperform its American counterpart, which finds it difficult to find demand as a safe-haven. As of writing, the pair was down 0.37% on a daily basis at 1.3049.
Vaccine headlines impact risk sentiment on Monday
Earlier on Monday, following Pfizer’s and Moderna’s inspiring results, Oxford/AstraZeneca announced that their coronavirus vaccine candidate was “up to 90%” effective in the latest trials. Risk flows started to dominate the financial markets at the start of the week and the S&P 500 Futures are up 0.6%, suggesting the upbeat market mood will remain intact during the American session.
After losing 0.4% last week, the US Dollar Index dropped to its lowest level since early September near 92.00.
On the other hand, crude oil prices gained traction on hopes for a steady recovery in the global energy demand and provided a boost to the loonie. At the moment, the barrel of West Texas Intermediate is trading at its highest level in 12 weeks at $43, rising 1.4% on the day.
In the second half of the day, the Federal Reserve Bank of Chicago’s National Activity Index and the IHS Markit’s preliminary Manufacturing and Services PMI data from the US will be looked upon for fresh impetus. Later in the session, Toni Gravelle, Deputy Governor of the Bank of Canada (BoC), will be delivering a speech.
Technical levels to watch for
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