USD/CAD extends rebound toward 1.3150 as DXY continues to push higher
|- USD/CAD edged higher in the early American session.
- US Dollar Index rose to 93.50 on Tuesday.
- Rising crude oil prices help CAD limit its losses.
After testing 1.3100 earlier in the day, the USD/CAD pair turned north in the early American session on Tuesday and touched a daily high of 1.3147. As of writing, the pair was up 0.25% on the day at 1.3144.
The broad-based USD strength seems to be fueling the pair's rebound in the second half of the day. With investors seeking refuge amid a lack of progress in Brexit talks and heightened concerns over additional delay in US coronavirus aid, the greenback continues to outperform its peers.
At the moment, the US Dollar Index is gaining 0.51% on a daily basis at 93.51. Reflecting the dismal market mood, the S&P 500 and the Dow Jones Industrial Average both trade in the negative territory.
On the other hand, rising crude oil prices help the commodity-sensitive CAD limit its losses. Following Monday's sharp drop, the barrel of West Texas Intermediate (WTI) is up 1.5% on a daily basis at $40.08.
The data from the US on Tuesday showed that the Consumer Price Index (CPI) in September ticked up to 1.4% on a yearly basis and matched analysts' estimates. Other data revealed that the IBD/TIPP Economic Optimism Index rose from 45 to 55.2 in October but was largely ignored by the market participants.
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.