USD/CAD drops below 1.33 as WTI pushes higher toward $54
|- Crude oil's recovery gathers momentum on Monday on supply concerns.
- US Dollar Index fluctuates in a narrow band below the 99 mark.
- Coming up: Fed Chairman Jerome Powell's speech at 17 GMT.
The bearish pressure surrounding the USD/CAD pair remains intact in the second half of the day on Monday as the commodity-related Loonie continues to find demand on the back of rising crude oil prices. As of writing, the pair, which touched a session low of 1.3288, was trading at 1.3298, down 0.15% on a daily basis.
Supply concerns boost oil prices
With the latest developments in the oil market pointing out to declines in the global output, the barrel of West Texas Intermediate (WTI) rose to a daily high of $53.90. Anti-government protests in Iraq is expected to disrupt the country's exports of 3.43 million barrels per day (bpd) from Basra terminals. Additionally, the Buzzard oil field in the British North Sea is also shut for maintenance. As of writing, the WTI was up 1.5% on the day at $53.70.
On the other hand, the lack of significant macroeconomic drivers on Monday causes the Greenback to stay relatively quiet and allows the CAD's valuation to continue to impact the pair's action. At the moment, the US Dollar Index is down 0.08% on the day at 98.76.
Later in the session, Federal Open Market Committee (FOMC) Chairman Jerome Powell will be delivering a speech. Nevertheless, he is not expected to give any hints regarding a policy action at this month's meeting. According to the CME Group FedWatch Tool, markets are now pricing 75% probability of a 25 basis point rate cut.
Technical levels to watch for
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