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  • US Dollar Index rebounds after closing lower for six straight days.
  • WTI posts modest daily losses, continues to trade above $61.
  • Coming up: Markit Manufacturing PMI data from US and Canada.

The USD/CAD pair slumped to its lowest level since October 2018 at 1.2950 on Tuesday as year-end flows continued to weigh on the greenback. With the market activity returning to normal following the New Year break, the pair is trying to stage a technical recovery. As of writing, the pair was posting small daily gains at 1.2985.

USD looks to start 2020 on strong footing

The greenback’s market valuation seems to be driving the pair’s action. After closing the last six trading days of 2019 in the negative territory and losing 1.3% during that period, the US Dollar Index is up 0.18% at 96.62 at the moment.

Later in the session, the weekly Jobless Claims data from the US and the IHS Markit’s Manufacturing PMI (final) from both Canada and the US will be looked upon for fresh impetus. 

In the meantime, the barrel of West Texas Intermediate added more than 11% in December to help the commodity-loonie to outperform its major rivals going into 2020. Before the Energy Information Administration (EIA) releases its weekly US crude oil stock report on Friday, the barrel of WTI is registering small daily losses around $61.20, helping the pair shake off the bearish pressure.

Technical levels to watch for