- USD/CAD edged lower in the early American session.
- Wall Street's upbeat performance weighs on greenback on Monday.
- WTI recovers above $40, trades in positive territory.
The USD/CAD pair closed the previous week with small gains but struggled to gather bullish momentum on Monday. After moving sideways below 1.3600 for the majority of the day, the pair lost its traction in the early American session dropped to 1.3535 before recovering a small portion of its losses. As of writing, the pair was down 0.32% on the day at 1.3547.
DXY drops below 96.50
The selling pressure surrounding the greenback caused the pair to turn south in the last hour. Despite the surging number of confirmed coronavirus infections in the US, Wall Street's main indexes opened the day sharply higher on vaccine hopes.
With the S&P 500 Index (SPX) climbing to its highest level in more than a month above 3,200 and gaining nearly 1%, the US Dollar Index (DXY) started to push lower and was last seen losing 0.35% on the day at 96.32.
On the other hand, falling crude oil prices weighed on the commodity-sensitive loonie and helped USD/CAD limit its losses on Monday. However, the barrel of West Texas Intermediate, which slumped to a daily low of $39.65 during the European session, took advantage of the upbeat market mood and staged a rebound. At the moment, the WTI is posting small daily gains at $40.60, allowing the loonie to preserve its strength against its rivals.
There won't be any macroeconomic data releases in the remainder of the day. On Wednesday, the Bank of Canada (BoC) will release its Monetary Policy Report for July.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.