USD/CAD posts modest gains near mid-1.32s as oil rally loses steam
|- Saudi Arabia voices committment to restore output after attack on Aramco.
- Crude oil prices calm down following Monday's huge gains.
- US Dollar Index preserves Monday's recovery gains ahead of the data.
Pressured by the sharp upsurge witnessed in crude oil prices and its positive impact on the commodity-sensitive Loonie, the USD/CAD pair edged lower on Monday. However, the broad-based USD strength and a pause in crude oil's rally allowed the pair to turn north today. As of writing, the pair was up 0.2% on the day at 1.3260.
After posting its largest daily percentage gain in nearly 40 years yesterday, the barrel of West Texas Intermediate seems to be staying in a consolidation phase near the $62 handle. Saudi King Salman's comments about the Kingdom staying committed to restoring the oil output in its facilities following the drone attacks seem to be helping ease concerns over protracted supply disruptions.
Attention shifts to data and the Saudi oil minister's presser
Meanwhile, the US Dollar Index, which added 0.8% on Monday to erase last week's losses, stays calm above the 98.50 area on Tuesday, providing additional support to the pair.
Later in the day, Manufacturing Sales data from Canada and Industrial Production and Capacity Utilization figures from the US will be looked upon for fresh impetus. More importantly, Saudi Arabia's oil minister's press conference at 17:15 GMT today will be watched closely by the market participants and a reaction in crude oil prices could affect the pair's movements in the second half of the day.
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.