USD/CAD clings to small daily gains around 1.2170
|- USD/CAD continues to trade near monthly high set on Friday.
- Rising crude oil prices help CAD limit its losses.
- US Dollar Index extends sideways grind around 90.50.
The USD/CAD pair reached its highest level since mid-May at 1.2178 on Friday and seems to have gone into a consolidation phase on Monday. As of writing, the pair was posting small daily gains at 1.2168.
Investors await FOMC meeting
The broad-based USD strength on the back of recovering US Treasury bond yields allowed USD/CAD to gain traction ahead of the weekend. After gaining 0.42% on a weekly basis, the US Dollar Index (DXY) is staying flat around 90.50 on Monday as investors move to the sidelines ahead of this week's key events.
On Tuesday the US Census Bureau will release the May Retail Sales report. More importantly, the FOMC will announce its monetary policy decision on Wednesday and publish the updated Summary of Economic Projections, which will provide fresh clues regarding the timing of a hawkish shift in the policy.
On the other hand, crude oil prices continue to push higher, helping the commodity-sensitive loonie stay resilient against its rivals. At the moment, the barrel of West Texas Intermediate (WTI) is trading at its highest level since October 2018 at $71.30, rising 0.7% on a daily basis.
Later in the session, Manufacturing Sales will be featured in the Canadian economic docket. There won't be any high-tier data releases from the US.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.