USD/CAD drops to fresh February lows below 1.3230
- WTI consolidates last week's gains, trades around $52.
- US Dollar Index moves sideways above 99 in quiet day.
- Coming up on Tuesday: Manufacturing Sales data from Canada.
The USD/CAD pair snapped its five-week winning streak and closed the previous week with a 50-pip loss as the recovering crude oil prices helped the commodity-related gather strength. With the trading action turning relatively subdued on Monday, the pair continued to edge lower and touched its worst level since the last day of January at 1.3225. As of writing, the pair was down 0.2% on the day at 1.3228.
Easing worries over the coronavirus outbreak weighing heavily on the global energy demand allowed the barrel of West Texas Intermediate (WTI) to gain nearly 3.5% last week. In the absence of significant market drivers, the WTI is trading in a tight range near the $52 mark.
What's coming up?
Both the US and Canada financial markets will be closed on Monday in observance of Presidents' Day and Family Day, respectively. The next potential catalyst for the pair will be the monthly Manufacturing Sales data from Canada on Tuesday. Later in the week, on Wednesday, the FOMC will publish the minutes of its last monetary policy meeting.
Until those events, crude oil prices are likely to continue to impact the pair's movements. In the meantime, the US Dollar Index is moving sideways above the 99 mark on Monday, reflecting the thin trading conditions.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
